HANJAR CINEMA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) BY filing the present petition under Article, 226 of the Constitution, the petitioner seeks a writ of mandamus to hold and declare that the petitioner has already paid the full amount of tax and that he is not liable to pay any interest which is demanded in the impugned notice. It is further prayed to set aside the notice proposing attachment and sale of the property.

(2.) THE following questions arise for consideration.

(3.) THE profile of facts is thus. The petitioner herein runs a cinema in the name and style "Hanjar Cinema". The competent authority under the Gujarat Entertainment Tax Act, 1977 (hereinafter referred to as 'the Act'), received report about irregularities committed by the petitioner in the matter of payment of entertainment tax by mentioning less amount on the ticket, but actually charging higher amount than one printed/mentioned on the ticket. The irregularities related to the period from 7.4.98 to 21.12.98 show cause noticed dated 31.5.1999 was issued calling upon the petitioner to explain the discrepancy. In the show cause notice, payment of entertainment tax and penalty for breach of section 21 of the Act read with the relevant Rules of Gujarat Entertainment Tax Rules, 1979 to the tune of Rs. 10,10,863/ - demanded. The petitioner was further called was upon to show cause as to why action should not be taken under section 16 of the Act.