CANTONMENT BOARD POONA Vs. WESTERN INDIA THEATRES LTD

JUDGEMENT

(1.) THESE two appeals arise from two companion suits filed by the plaintiffs who are lessees of certain theatres situated within the limits of Poona and of two theatres known as West-End and Capitol situated within the limits of Poona Cantonment.

(2.) THE question which comes up for determination in these two appeals is with regard to the legality of the tax which is levied by the two bodies, the Poona Municipality and the Cantonment Board of Poona, upon shows which are given at the Cinema Theatres situated within their local limits. It appears from the evidence that in the year 1920 the City Municipality was desirous of levying the tax which subsequently came to be known by the rules framed by the Municipality as a theatre tax. The tax was not, however, a tax which could be levied by the Municipality under the power conferred upon it under Section 59, Sub-section (1), Clauses (i) to (x ). It was a tax which could be levied by the Municipality if at all under the provisions of Sub-clause (xi) which at that time ran as follows:

(3.) THE Municipality thereupon approached the Governor-in-Council, and it is not in dispute that the Governor-in-Council first of all gave the approval necessary under Section 59 (1), Clause (xi), for the Municipality to select the tax and after the proper procedure was followed ultimately the tax was approved by the Governor-in-Council in July 1920. The tax was at first levied at the rate of Rs. 2 per day, but subsequently in the year 1941 the Bombay Municipal Boroughs Act having been passed in the meanwhile in 1925, the Municipality followed the procedure provided by the provisions of the 1925 Act for imposition of a new tax, and the sanction of the Provincial Government having been obtained, it started levying the tax at the increased rate of Re. 1 per show from 15th August 1941. The tax was similarly increased from 15th August 1948, to Rs. 5 per show.