Clyde's, which operates restaurants in Chevy Chase and Columbia, should not be required to pay Maryland's admissions and amusement tax on gross receipts, the Court of Special Appeals said yesterday.

Music played there is mostly for ambience, and the restaurant does not rely on a cover charge or additional food and beverage sales to pay for the entertainment, the court held in a 2-1 decision.

The ruling came in a failed appeal by the state comptroller's office, which also lost bids in Tax Court and Baltimore City Circuit Court to collect the taxes from the Washington-area restaurant chain.