NATRAJ CHHABIGRIH Vs. STATE OF U.P.

JUDGEMENT

(1.) BY this petition Under Article 226 of the Constitution, Petitioner has prayed for issuance of an Order, direction or writ in the nature of certiorari quashing the amendment made in proviso to Section 3A of the Uttar Pradesh Entertainment and Betting Tax Act, 1979, (hereinafter referred to as 'the Act') through the Government Order dated 17.10.1994 (contained in Annexure 6 to the writ petition) whereby those cinema owners who are availing grant -in aid from the State Government in the form of exemption from payment of entertainment tax, such as present Petitioner, have been debarred from charging Re. 1 per ticket towards maintenance charge.

(2.) IN short, Petitioner's case is that for promoting and uplifting the business of cinematograph exhibition, State of Uttar Pradesh vide Government Order No. 30 -E V.6(15) -B -5. Vitta -Ha -Ka -Anubhag, dated 21.07.1986 provided for grant -in -aid to the cinema owners on the terms and conditions mentioned therein. One of the conditions is that such cinema houses will not keep their admission rate (inclusive of tax) more than Rs. 5. This incentive scheme was framed with a view to encourage the construction of new cinema houses in small towns having a population of not more than one lac.

(3.) IN Order to provide some relief to the exhibitors. The Government enacted Section 3A in the Act by the Uttar Pradesh Act 14 of 1992. Section 3A permitted the proprietor of a cinema to charge 25 palsa per ticket towards maintenance charge without payment of tax on this additional amount. This was subsequently increased to Re. 1 per ticket. The proviso to Section 3A however, prohibited those cinema owners who are availing the benefit of grant -in -aid under the aforesaid scheme, from charging this extra amount during the period they avail the benefit of the scheme. In other words, after the period of grant -in -aid is over, they too can avail the benefit under Section 3A.