V. MANICKAVASAGAM Vs. THE STATE OF TAMIL NADU. REP. BY THE ENTERTAINMENT TAX OFFICER, ADYAR, ASSESSMENT CIRCLE, MADRAS

JUDGEMENT

(1.) THE lessee, Eros Theatre, Adayar, who is the petitioner herein has filed these petitions to quash the proceedings initiated by the Entertainments Tax Officer before the IX Metropolitan Magistrate, Madras -15, in C.T.M.P. 1 to 4 of 1978.

(2.) THE petitioner who is a lessee of Eros Theatre at Adayar was originally a lessee of Kabali Talkies. He opted for submitting weekly returns of entertainments tax and therefore, a permk in form IV (the affidavit does not say under what rules, but obviously under the Tamil Nadu Entertainments Tax Rules), was granted to him. Rule 31 of the Tamil Nadu Entertainments Tax Rules, 1939, says that the proprietor of a theatre should furnish security for proper payment of entertainments tax. While he was a lessee of Kabali talkies, he has paid a cash deposit of Rs. 9,804 and in respect of Eros theatre a cash deposit of Rs. 7,700 has been paid and therefore, there was a total cash deposit of Rs. 17,504, and the Entertainments Tax Officer, Adyar assessment circle, Madras, has adjusted a sum of Rs. 6,373 (the affidavit does not anywhere show as to what this adjustment pertains to) and after such assessment, a balance of cash deposit of Rs. 11,131 is left with the Entertainments Tax Officer. The petitioner states in the affidavit filed in support of the petition that for the weeks starting from 22nd January, 1978, 29th January, 1978, 5th February, 1978 and 12th February, 1978, a total sum of Rs. 16,685 is payable as entertainments tax, that he was asked to submit from 14th December, 1977 daily returns instead of weekly returns, that as he was asked to file returns daily, it is enough if 75 per cent of the tax payable on tickets based on full capacity of the auditorium for a day is deposited security, that he requested the department to adjust the balance of cash deposit towards arrears of tax payable that he also deposited a sum of Rs. 5,254 towards the balance of arrears and therefore, the entire arrears were thus settled (obviously meaning that the arrears have been wiped out). He adds that he also deposited a sum of Rs. 2,000 as security and that fact was also informed to the Deputy Commercial Tax Officer, Adyar division.

(3.) A counter -affidavit was filed by the Entertainments Tax Officer, Adyar assessment circle. Hi admitted that the petitioner opted for submission of weekly returns of center teguments tax and that a permit in Form IV was issued to him. He stated that the security deposit payable by the Eros Theatre is Rs. 13,270, that according to the R.21 (1) of the Tamil Nadu Entertainments Tax Rules, a sum of Rs. 12.070 -80 should always remain with the Commercial taxes department (Entertainment Tax Officer, Adyar circle) as security deposit in respect of Eros Theatre, that under R. 25 only the amount that remains in excess of Rs. 12,070 -80 can be adjusted towards future arrears, if any, due by the lessee of the theatre and that the petitioner cannot as a matter of right insist on the security deposit being adjusted towards tax arrears.