RAMA THEATRE Vs. DCTO

JUDGEMENT

(1.) The writ petitioner in each case is an exhibitor, screening films in his respective theatre at Pithapurpm. Under Rule 12 (3) of the A.P. Cinemas (Regulation) Rules, 1970, framed under Secs.6 and 11 of the A P. Cinema (Regulation) Act. 1955. the Joint Collector. East Godavari, who is the licensing anthority under the said Act, shall, while granting or renewing a licence in Form-B, also fix the maximum rates of payment for admission to the different classes in the licensed premises. Those rates shall not be increased during the currency of the licence without an order in writing by the licensing authority permitting such increase. Prior to 2nd July, 1976 the maximum rate of payment for a 1st class ticket and 3rd class ticket were fixed respectively at Rs. 1-45 p. and Rs. 0-70 p. Under sec.4 of the Entertainments Tax Act, the rate of entertainment tax is 35% on each payment for admisson where such payment (exclusive of the amount of tax) is not more than Rs. 1-00 and Rs.0-50 p. The exhibitor had also to pay an additional tax of Rs. 0-10 p. on each payment for admision to any entertainment together with the tax payable under sec 4(1) where such payment (exclusive of the amount of tax) is not more than Rs. 0-50 p ; additional tax of Rs. 0-20 p. where such payment is more than Ps. 0-50 p. but is not more than Rs. 1-00 and additional tax at the rate of Rs. 0-30 p. where such payment is more than Rs. 1-00 but is not more than Rs. 1-50 p. We are not concerned in these writ petitions with the other slabs of rates of either entertainment tax or additional tax provided for under Sec.4 of the Entertainments Tax Act,

(2.) Rule 27 of the Entertainments Tax Rules runs as fellows :- (1) The proprietor shall not issue or cause or permit to be issued any ticket authorising any person to be admitted to the entertainment unless the prtce of admission, exclusive of (the entertainment tax and additional entertainments tax) payable thereon (the entertainment tax and additional entertainments tax) so payable and the total payment for admission are legibly printed or otherwise marked on such a ticket, and if the ticket should be impressed with the official seal of the Entertainment Tax Officer unless it has been so impressed. (2) Where the price of admission, exclusive of (the tax and the additional tax), and the total payment for admission are not separately printed, stamped or otherwise marked on the ticket, as required under sub-rule (1), the amount specified in the ticket as the price for admission shall be deemed to be the price of admission, (exclusive of the tax ard the additional tax), and the proprietor shall be liable to be assessed accordingly without prejudice to any other penalty to which he would be liable under the Act".

(3.) Prior to July 1976, the petitioners were accordingly selling 1st class tickets indicating thereon Rs. 1-45 p. as the total payment for admission after giving the break up at Rs. 0-92p. as price for admission, Rs. 0-33p. as entertainment tax and Rs. 0.20p. as additional tax. The corresponding figures for 3rd class tickets were Rs. 0-70p. giving the break up figures as Rs. 0-44. Rs. 0-16p. and Rs. 0-10p. Section 4 (2) of the Entertainments Tax Act provided for appropriate adjustments of fractions in working out the entertainment tax. Except that in regard to 1st class tickets the entertainment tax at 35% on the price of admission works out to Rs. 0-32p and not Rs. 0-33p the break up was made so as to propertly adjust the components of the price of admission, the entertainment tax and additional entertainments tax within the rate of admission approved by the Joint Collector. During May 1976, the petitioners applied to the Joint Collector for enhancement of the rates of admission to the 1st class and 3rd class from Rs 1-45 p to Rs 1-70 p and from Rs 0-70 p to Rs 0-90 p respectively. The 2nd respondent, however, permitted marginal enhancement and fixed the maximum rates of admission at Rs 1-65 p and Rs 0-80 p respectively for these two classes. The petitioners there after Fold the tickets, printing thereon the revised rates as total payment for admission and giving the break up figures in respect of the 1st class as Rs 1-07 p (price of admission), Rs 0-38 p (entertainment tax) and Rs 0-20 p (additional entertainment tax). The corresponding break up figures for the revised 3rd class ticket are Rs 0-52 p (admission price) Rs 0-18 p (entertainment tax) and Rs 0-10 p (additional tax). Under Sec. 4 of the Entertainment Tax Act, the additional entertainment tax ought to be Rs 0-30 p when the price of admission exceeded Rs 1-00 and pot Rs 0-20 p which is payable only if the price of admission is not more than Rg. 1-00. Similarly, (he additional entertainment tax payable on the 3rd class ticket ought to be Rs. 0-20 p, as the price of admission exceeded Rs0-50 p and not Rs 0-10 p as printed in the 3rd class ticket. The entertainment tax component calculated at 35% on the price of admission in respect of the 1st class ticket comes Rs 0-37 p but not Rs 0-38 p.