P SANKARA NARAYANAN Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) IN this batch of writ petitions, the petitioners have challenged the validity of the provisions contained in Tamil nadu Entertainment Tax (3rd Amendment) Act (15 of 2003 ).

(2.) TAMIL Nadu Entertainments Tax, 1939 (hereinafter referred to as "the Act") contains provisions regarding levy of entertainment tax on various modes of entertainment including by cinema. Section 4 of the Tamil nadu Entertainments Tax, 1939 envisages payment of entertainment tax at the rate of 25% of the gross payment for admission for any new film and at the rate of 20% for the old. By virtue of the provisions contained in such Amendment Act (No. 15 of) 2003, hereinafter referred to as the " (3rd Amendment)Act," certain provisions have, been inserted in the Tamil Nadu Entertainment Tax Act, 1939 making provisions for payment of entertainment tax at a higher rate on tickets of "dubbed films. " section 3 (3-A), inserted by (3rd Amendment) Act, is a definition clause according to which "dubbed film" means any film for cinematograph exhibition made or produced originally in a language other than Tamil and subsequently dubbed in Tamil language. Section 4-H, inserted by such (3rd amendment) Act, is as follows :-"4-H. Tax on dubbed film.- (1) Notwithstanding anything contained in this Act, there shall be levied and paid to the State government, a tax (hereinafter referred to as the entertainment tax), on each payment for admission to any cinematograph exhibition of dubbed film, calculated at the rate of fifty per cent. of the gross payment for admission inclusive of the amount of the tax. (2) Notwithstanding anything contained in sub-section (1), there shall be levied and paid to the State Government (except as otherwise expressly provided in this Act), on every taxable complimentary ticket, entertainment tax at the rate specified in sub-section (1), as if full payment had been made for admission to the entertainment according to the class of seat or accommodation which the holder of such taxable complimentary ticket is entitled to occupy or use; and for the purposes of this Act and the Tamil nadu Local Authorities Finance Act, 1961 (Tamil Nadu Act No. 52 of 1961), the holder of such taxable complimentary ticket shall be deemed to have been admitted on payment. (3) Where the proprietor has exercised option to pay tax under S. 5-B and exhibits dubbed film on any day in the week, the tax in respect of payment for admission to such exhibition shall be calculated under sub-section (1) and the tax in respect of exhibition of other films in that week shall be calculated under S. 5-B proportionately. (4) The tax levied under sub-section (1)shall be recovered from the proprietor. (5) The provisions of this Act other than ss. 4, 4-B, 4-D, 4-E, 4-F, 4-G, 5, 5-A, 5-B, 5-C, 5-D, 5-E, 5-F and 5-G and the rules made thereunder shall, so far as may be, apply in relation to the tax payable under sub-section (1 ). "

(3.) NET result of such (3rd Amendment)Act is to the effect that, if any film made or produced originally in a language other than tamil is subsequently dubbed in Tamil language and exhibited in any cinema theatre, obviously within Tamil Nadu, entertainment tax shall be levied and paid to the State government at the rate of 50% of the gross payment for admission.