ZANJHAR CINEMA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) By this petition under article 226 of the Constitution of India, the petitioner has challenged the notice dated July 1, 1981 issued by the Deputy Secretary, Information and Broadcasting Department (annexure F to the petition) as well as the order dated February 6,1993 (annexure H to the petition) passed by him in exercise of powers under section 13 of the Gujarat Entertainments Tax Act, 1977 ("the Act").

(2.) The facts as appearing in the petition shorn of unnecessary facts are that the petitioner established a cinema by the name of "Zanjhar Cinema" at village Hasanpur and obtained a cinema performance licence for running the said Cinema. Under the provisions of the Act, entertainment tax is liable to be paid under the provisions of section 3 of the Act. However, the proprietor can make an application under section 6 of the Act whereupon he can be allowed to make consolidated payment of tax by compounding tax as per the provisions of the said section.

(3.) According to the petitioner, the theatre of the petitioner was located in the designated area as contemplated under section 6 of the Act. It, therefore, applied on December 31, 1988 for allowing it to make consolidated payment of tax instead of payment under section 3(1) of the Act by compounding the tax payable in respect of the entertainment for fixed sum by calculating as per the provisions of section 6 of the Act. Subsequently, the Act came to be amended on December 23,1988 pursuant to which, the petitioner made another application on January 4, 1989 to the respondent No. 2 for allowing the petitioner to make consolidated payment of tax as per section 6 as amended by the Amendment Act which came into force from December 23,1988. Respondent No. 2-the mamlatdar and prescribed officer decided the first application made by the petitioner without considering the amended provisions thereof and passed an order dated January 5, 1989 holding that the petitioner's cinema is in the designated area and consolidated payment of tax and fixed sum of compound tax is payable in respect of the entertainment in the cinema of the petitioner by working out and calculating as per section 6 of the Act.