ODEON MANI TIRAIARANGAM Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS batch of writ petitions question validity of the application of sections 4, 4-A, 4-B and 4-C of the tamil Nadu Entertainments Tax Act, 1939 and section 3 of the Tamil Nadu Local authorities Finance Act, 1961, with effect from 1st June, 1978, to the various theatres which according to the petitioners herein are only liable to pay the compounded rate of tax under sections 5-A and 5-B of the Tamil Nadu entertainments Tax Act.

(2.) SINCE the prayer involved is the same in all these writ petitions and the question involved relates to the payment of entertainment tax at the compounded rate under sections 5-A and 5-B, we can usefully refer to the facts in W. P. No. 2505 of 1978. The petitioner in W. P. No. 2505 of 1978 is the licencee of a theatre called'theagaraja talkies'in Thiru-vanmiyur. He is running a theatre for over ten years in that place. Originally, he was paying the taxes under sections 4, 4-A and 4-B of the Tamil Nadu Entertainments Tax Act and under sections 3 (1) (a), 3 (1) (b) and 4-C of the Tamil Nadu Local Authorities Finance Act. While so, the government of Tamil Nadu amended the Tamil Nadu Entertainments Tax Act by ordinance V of 1977 promulgated on 2nd December, 1977. The amendment was brought into force from 26th December, 1977. The Ordinance was subsequently replaced by Act V of 1978, which received the assent of the Governor on 20th january, 1978. As per section 1 (2) of the Said Act V of 1978, the Act was deemed to have come into force as and from 26th December, 1977. By virtue of the said Act V of 1978, sections 5-A and 5-B were introduced into the main Act.

(3.) THE petitioner further submitted that the State government (first respondent) has no power to expand the area of the city of madras by issuing a notification under section 3 (9) of the Madras City municipal Corporation Act, 1919. It was claimed that section 3 (9) does not confer any power upon the State Government and therefore, the expansion of the city of Madras by including the area in which the petitioner's theatre is situate by G. O. Ms. No. 790 is invalid and ultra vires Madras City municipal Corporation Act.