PRAKASHAN PILLAI Vs. MARARIKULAM SOUTH PANCHAYAT

JUDGEMENT

(1.) Petitioner is the proprietor of a cinema house situated in the local jurisdiction of the first respondent Panchayat. Alleging violation of S.5 of the Local Authorities Entertainments Tax Act, 1965 and consequential evasion of tax found out on surprise visit held on 22.8.87 and 1.9.87, proceedings were initiated by the Executive Officer, directing him to close down the cinema house. Petitioner challenged these orders in O. P. Nos. 7528 and 8793 of 1987, which ended in Exts. P1 and P2 judgments. The orders were quashed and, the authorities were directed to take action giving the petitioner an opportunity to show cause, and to consider his explanation.

(2.) Based on Exts. P1 and P2, Exts. R.2(a) & R2(b) notices were issued to the petitioner. In Ext. R2(a) the provisions in Local Authorities Entertainment Tax is referred to whereas no provision is referred to in Ext. R2(b). Petitioner submitted his explanation and the executive authority passed Ext. P4 and P5 orders imposing a fine of Rs. 500/- in respect of each of the occasions and levy of the tax alleged to be evaded. The said orders refer to the provisions of Cinemas (Regulation) Act, 195 8 and not Local Authorities Entertainments Tax Act.

(3.) Though these two enactments do not provide for an appeal, petitioner preferred Ext. R2(e) appeal and it was entertained by the first respondent Panchayat. Ext. P6 is the resolution containing the orders on the said appeal. As per Ext. P6, the Panchayat reduced the fine as well as the allegedly evaded tax by 40%. The net effect is that the petitioner was imposed with a fine of Rs. 300/- for each of the occasions, apart from a total amount of Rs. 4,781/- as allegedly evaded tax.