ISMAIL Vs. ALWAYE MUNICIPALITY ALWAYE

JUDGEMENT

(1.) A common question arises for decision in the Original petition and the two Writ Appeals and we propose to deal with them by a common judgment. The question relates to the quantum of the entertainment tax that has to be levied under S. 3 of the Kerala Local Authorities Entertainments Tax Act, 1961 after the passing of the Kerala Additional Tax on Entertainments and Surcharge on Show Tax, Act, 1963 and the Kerala Additional Tax on Entertainments and surcharge on Show Tax (Amendment) Act, 1972. The Kerala Local Authorises entertainments Tax Act, 1961, hereinafter referred to as the Entertainments Tax act, 1961, came into force on 3rd July 1961 and the Kerala Additional Tax on entertainments and Surcharge on Show Tax Act, 1963, for short, Act 22 of 1963, on 1st April 1963. The Kerala Additional Tax on Entertainments and Surcharge on show Tax (Amendment) Act, 1972, for short Act 7 of 1972, came into force on 28th March 197

(2.) 2. It has been a matter of controversy as to whether the entertainments tax charged by S. 3 of the Entertainments Tax Act, 1961 should be calculated on the price of admission as envisaged by R. 8 of the Kerala Local authorities Entertainments Tax Rules, 1962 or whether it should be calculated on the price of admission as envisaged by R. 8 of the Kerala Local Authorities entertainments Tax Rules, 1962 or whether it should be calculated on the pries of admission as envisaged in that rule plus the tax payable under the Act. The relevant sections to be considered for this purpose are S. 2 (7) and 3 of the entertainments Tax Act, 1961 and we shall extract those sections: "2 (7) 'payment for admission' includes (a) any payment made by a person who having been admitted to one part of a place of entertainment, is subsequently admitted to another part thereof, for admission to which a payment involving a tax or a higher rate of tax is required; (b) any payment for seats or other accommodation in a place of entertainment; and (c) any payment for any purpose whatsoever connected with an entertainment which a person is required to make as a condition of attending or continuing to attend the entertainment in addition to the payment, if any, for admission to the entertainment.

(3.) THE direction issued by Ext. P-1 produced along with o. P. No. 4856 of 1972 by the Kodungallur Panchayat to the petitioner in the original Petition therefore is in accordance with the provisions in the relevant statutes, the Entertainments Tax Act, 1961 and Act 22 of 1963. We are therefore unable to grant the prayer for quashing this direction or to restrain the Panchayat from collecting the tax on the basis of that direction.