ENTERTAINMENT TAX OFFICER Vs. HI TECH THEATRE

JUDGEMENT

(1.) Interpretation of Sub-section(6) of Section (5) of the Andhra Pradesh Entertainments Tax Act, 1939 in the facts and circumstances as obtaining herein falls for our consideration in this appeal which arises out of a judgment and order dated 6.1.2006 passed by a Division Bench of the Andhra Pradesh High Court in Writ Petition No.20087 of 2005 allowing the writ petition filed by the respondent herein.

(2.) The basic fact of the matter is not in dispute.

(3.) Respondent owns a cinema theatre. It is exigible to payment of entertainment tax. Section 4 of the Andhra Pradesh Entertainment Tax Act provides for the mode and manner for calculating the quantum of tax payable. Section (5) of the said Act, however, provides for computation of tax on the basis of an option to be exercised by the owner of the theatre subject to the conditions as may be prescribed therefore. Indisputably, the State has made rules for calculation of the tax in lieu of such an option exercised by the owner of the cinema theatre. The scheme for exercise of such an option is that;(i) a proprietor shall file an application in the prescribed form before the prescribed authority;(ii) the authority would pass an order upon giving an opportunity of hearing to the owner of the theatre for correct determination of the amount and the nature of security to be furnished by the proprietor for proper payment of tax and the time within which such security to be furnished;(iii) once such security is furnished the Entertainment Tax Officer is required to grant a permit in the prescribed form, namely, Form IV wherafter, the proprietor of the cinema theatre is to pay tax in the manner indicated therein.