LAKSHMI TOURING TALKIES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These two writ petitions are disposed by the following common order at the stage of preliminary hearing after notice to respondents who have entered precedappearance through the learned High Court Government Pleader.

(2.) Petitioners are owners of touring cinema houses at Channagiri Town. They are aggrieved by the notice issued by the Asst. Commercial Tax Officer informing them that in view of the fact that the population of Channagiri Town has exceeded ten thousand, according to the provisional population Census, 1981, they are no longer eligible for composition under S. 4-A of the Karnataka Entertainments Tax, Act, 1958 (hereinafter referred to as the Act).

(3.) In substance the above notices required the petitioners to pay entertainment tax under S. 3 of the Act. S. 3 is the main charging section, while S. 4 is also a charging section, but in respect of show taxes S. 4-A of the Act provides for composition by cinema theatre owners in towns with less than ten thousand population where the owners can pay a lumpsum amount equal to 12-1/2 per cent of the maximum collection pos- sible if seats have been filled in the theatre. Otherwise, the owners are required to pay entertainment tax in advance of the actual sale of tickets with weekly or fort-nightly returns as the case may be in the case of theatres situate in towns or cities which have population exceeding ten thousand.