DURGA TALKIES Vs. DISTRICT MAGISTRATE, FARRUKHABAD AND OTHERS

JUDGEMENT

(1.) IN this petition under Article 226 of the Constitution, petitioner M/s. Durga Talkies has assailed the decision of the District Magistrate, Farrukhabad dated February 7, 1982 refusing to extend the benefit of remission in the Entertainment tax payable by the petitioner in terms of the Scheme contained in the Government Order dated November 10, 1978 and the affirmance of that decision by the State Government through its order of March 5, 1983. The petitioner had approached the State Government under Section 36(2) of the Entertainment and Betting Tax Act, 1979 (for brief, the Act of 1979) because, when it came to this Court earlier, the writ petition filed by the petitioner against the order of the District Magistrate was dismissed in limine by this Court on April 8, 1982 on the view that it had a right to approach the State Government under that provision. On November 10, 1978, the Secretary to Government, U.P. addressed a communication to all the District Magistrates in U.P. saying that in order to encourage construction of permanent cinema houses in U.P. in the rural and semi urban areas where the number of permanent cinema houses was very low as compared to other States, the State Government had decided to grant remission in entertainment tax to newly constructed permanent cinema houses which satisfied the conditions laid down in the communication. It was also said that under the Scheme, the power to grant the exemption under Section 6(3) of the U.P. Entertainment and Betting Tax Act, 1937 (briefly, the Act of 1937) was being delegated to the District Magistrates.

(2.) THE Scheme, as contained in the Government order of November 10, 1978 is substantially this. In municipal of non -municipal areas, with a population of not more than fifty thousand as recorded in the last census where there were no permanent cinema houses, exemption from entertainment tax would be available in respect of films exhibited in the newly constructed cinema house where such a cinema house was at a distance of at least five kilometres from a pre -existing permanent cinema house and would be available only in respect of such permanent cinema houses which had obtained an exhibitor's licence during the period between the date of the communication and December 31, 1981. The entertainment tax would be realised, in respect of films exhibited in the cinema houses to which the benefit of the scheme is extended, for a period of two years in the manner that in the first year a sum of Rs. 25,000/ - or 25 per cent of the amount of entertainment tax otherwise payable, whichever was higher, would be realised while during the second year it would be Rs. 50,000/ - or 50 per cent of the amount of tax payable, whichever was higher. Surcharge would, however, be payable at the normal rates. The District Magistrate shall issue the exemption order in a proforma which was enclosed with the communication. This proforma, inter alia, mentioned the manner in which the amount of entertainment tax payable by an Exhibitor, to whom the benefit of the Scheme has been extended, was to be calculated and deposited.

(3.) AT that stage, the petitioner approached this Court under Article 226 of the Constitution but was asked to assail the decision of the District Magistrate before the State Government in a revision. When the State Government declined to intervene, the present writ petition was filed as has been said earlier.