COMMISSIONER OF COMMERCIAL TAXES Vs. DRIVE IN ENTERPRISES

JUDGEMENT

(1.) This appeal of the Commissioner of Commercial Taxes, Bangalore, and the Entertainment Tax Officer, VIII Circle, Bangalore (hereinafter referred to as 'the Taxing Authorities'), is directed against the order dated 4.2.1981 in Writ Petition No. 8332/78 by which it is held that Drive-in Enterprises (hereinafter referred to as 'the proprietors'), were not liable to pay entertainments tax under the Karnataka Entertainment Tax Act, 1958 (hereinafter referred to as 'the Act') respecting service charges of Rs. 2/- charged by them on each motor car taken into their 'drive-in cinema' premises and consequential reliefs thereof, are granted.

(2.) The facts, which have given rise to this appeal, are briefly these: By their letter dated 18th February 1978 (produced as Annexure-B in the writ petition), the proprietors sought a clarification from the Commissioner of Commercial Taxes (hereinafter referred to as 'the Commissioner') whether the amount of Rs. 2/- charged by them as service charges, respecting each motor car taken into their 'drive-in cinema' premises, is liable to entertainments tax under the Act, in addition to the liability to such tax of each payment for admission to entertainment made by its occupants. In his reply dated 2.3.1978 (produced as Exhibit-A in the writ 'petition) given thereto, the Commissioner clarified that Rs. 2/- charged by the proprietors as service charges on the motor car taken into their drive-in cinema premises, was also liable to entertainments tax under the Act. It appears that the proprietors paid entertainments tax on service charges collected by them respecting motor cars taken into their 'drive-in cinema' premises to the Taxing Authorities for a few days, but under protest. However, the proprietors being advised that they were not liable to pay entertainments tax under the Act respecting the charges collected by them on motor cars taken into their 'drivein cinema' premises, presented a writ petition before this Court questioning the correctness of the view of the Commissioner given in his aforesaid reply and seeking refund from the Taxing Authorities, of the taxes paid by them under protest. That writ petition having been allowed by an order of a learned single Judge, the same has become" the subject matter of this appeal, as stated earlier.

(3.) Rule 111-A(1) of the Karnataka Cinemas (Regulation) Rules, 1971, defines 'drive-in cinema' thus: