GRAND SURJIT CINEPLEX, A UNIT OF M/S.DARSHAN AMUSEMENTS PVT.LTD.THROUGH ITS DIRECTOR Vs. STATE OF U.P. THROUGH ITS SPECIAL SECRETARY, TAX AND REGISTRATION, SECRETARIAT, U.P., LUCKNOW AND OTHERS

JUDGEMENT

(1.) HEARD Sri Amol Ranjan, learned Counsel for the peti­tioner and Sri B.K. Pandey, learned Standing Counsel.

(2.) BY means of present petition, the petitioner is challenging the demand of the penal interest under section 34-A of the U.P. Entertainments and Betting Tax Act, 1979 (hereinafter referred to as the "Act").

(3.) IT appears that though the petitioner had exhibited Cinema but had not paid the tax for the period of 16.1.2004 to 9.2.2004 as required under section 8 read with Rule 24 of the U.P. Entertainments and Betting Tax Rules, 1981 (hereinafter referred to as the "Rule"). It also appears that for a long period, no demand had been raised for the aforesaid period. Thereafter, the respondent No. 2, on 4.8.2006 issued the notice, demanded a sum of Rs. 7,74,666.57 P. plus interest thereon at the rate of 2% per month from 16.1.2004 to 9.2.2004. It appears that the petitioner has deposited the principal amount of the tax de­manded as per notice, however, disputing the demand of the interest.