SHITLA PRASAD DUBEY Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) All these petitions that have been filed by the same petitioners are inter linked and the main controversy is the same. They were, therefore, heard together and are being disposed of by this common judgment.

(2.) The business of exhibition of films in a cinema house is regulated by the statutory provisions contained in U.P. Cinema (Regulation) Act, 1955 and the U.P. Cinematograph Rules, 1951. The exhibition of films in a cinema house involves entertainment and, therefore, the owner of a cinema house is liable to pay entertainment tax under the provisions of the U.P. Entertainment and Betting Tax Act, 1979.

(3.) In order to promote construction of new permanent cinema houses in small towns in the State of U.P., the Government had notified a scheme through a Government Order dated 17th of Oct. 1983 whereunder the entertainment tax realised by owner of a cinema house from the viewers could be retained by him by way of grant in aid. The scheme did not attract sufficient response and, therefore, the scheme was modified Government Order dated 21st of July, 1986, a copy of which is Annexure 1 to writ petition No. 20486 of 1989. It is admitted that it is this scheme of which the benefit was claimed by the petitioner and which is relevant for the purposes of these writ petitions. The provisions made in this Government Order dated 21-7-1986 provided that the benefit of the scheme would be available to permanent cinema houses fulfilling the following conditions:-(i) The application for approval of site plan should be moved between 1-1-1983 and thereafter;(ii) The application for license should be made between 1-1-1984 to 31-3-1990.;(iii) The rate of admission to the entertainment including entertainment tax should not exceed Rs. 5.00.The quantum of aid was - (1) for cinemas in places with a population of more than 20000 but less than 1 lac according to 1981 census :-(i) for the first year equal to 100% of entertainment payable ;(ii) for second year equal to 75% of entertainment tax payable; (iii) for third year 50% of entertainment tax payable; (iv) thereafter nil.(2) For cinema in places with population of less than 20000:-(i) for first and second years equal to 100% of entertainment tax payable; (ii) for third year equal to 75% of the entertainment tax payable;(iii) for fourth and fifth years 50% of the entertainment tax payable.(iv) for sixth year and thereafter nil.The scheme contained in said Government Order also provided for some procedural requirement as under :-(i) the owner of the cinema would keep account of all receipts from sale of tickets according to Rule 13 of U.P. Entertainment and Betting Tax Rules and to prepare form kha;(ii) the amount of aid will be adjusted from the entertainment tax payable which the owner will prepare every week account showing the income from the sale of tickets, the amount of entertainment tax due and the amount payable, any after adjustment of amount of grant-in-aid;(iii) the amount of entertainment tax payable in cash will be paid within three days of the end of the week;(iv) will not be necessary for the owner to deposit the amount of entertainment tax in cash. The owner shall prepare a monthly consolidated bill for the amount of aid in form 41 (b) according to Rule 209 of Financial Handbook Vol. V Part I and get them counter signed by the District Magistrate and present before the Treasury Officer a challan for the same amount.(v) the sanction for grant-in-aid will be made by the District Magistrate after the grant of licence and after the owner has signed an agreement.