THEATRE SANGAMESH Vs. ENTERTAINMENT TAX DEPUTY COMMISSIONER KURNOOL

JUDGEMENT

(1.) This special appeal under Section 9E of the Andhra Pradesh Entertainments Tax Act (for short "the Act") is referred to the Full Bench by a Division Bench of this Court observing that there appears to be a direct conflict between the judgment of a Division Bench of this Court dated 8-2-1988 in Triveni Theatre, Anantapur v. Deputy Commissioner Commercial Taxes, Special Appeals Nos. 43 to 46 of 1984 and a judgment of another Division Bench in Sri Rama Theatre v. Dy. C.T.O., Kakinada, 1982 (2) APLJ (HC) 209.

(2.) We shall presently refer to the controversy which led to the reference to the Full Bench. But before we do so, we would give the relevant facts of this case to appreciate the controversy.

(3.) The appellant is a proprietary concern carrying on the business of exhibiting films. The rates of admission to the appellant-theatre are governed by the Andhra Pradesh Cinemas (Regulation) Rules, 1970 (for short "the Cinemas Rules") and the Andhra Pradesh Entertainment Tax Rules (for short "the Entertainment Tax Rules"). Under Rule 12(3) of the Cinemas Rules the Licensing Authority fixes the maximum rates of payment for admission to different classes in the theatre. Section 4 of the Act imposes entertainment tax on the payment for admission in accordance with the rates mentioned therein. Section 4-A of the Act imposes additional tax on cinematograph exhibitions according to the rates specified therein. The dispute in this appeal relates to liability of the appellant to pay additional tax assessed for the four quarters ending on 30-6-1981, 30-9-81, 31-12-81 and 31-3-82 of the assessment year 1981-82. Under the Cinema Rules the maximum rates fixed by the Licensing Authority earlier to the period ending on 31/03/1981 for the reserved class and the second class, with which we are concerned in this appeal, were Rs. 2-30 PS. and Re. 0-75 PS., respectively. On the request of the petitioner for enhancement to Rs. 3-00 and Re. 1-00, the Licensing Authority, the Joint Collector, by his proceedings dated 20-3-1981 permitted the enhancement of the maximum rate to Rs. 2-50 Ps. and Re. 0-85 Ps., respectively. On the tickets meant for the reserved class the appellant printed the break-up of the figure as follows :-- "Entertainment Tax Re. 0-70 Ps. Addl, Tax 0-30 Ps. Net. Rs. 1-50 Ps." For the second class the amount noted on the ticket is 85 Paise, the break-up of which is given as follows :-- "Entertainment Tax Re.O-19 Addl. Tax 0-10 Net Rs. 0-50" By orders of assessment passed by the Entertainment Tax Officer, Anantapur on 9-11-1982 and 27-8-1983 deficit of additional tax of 8 Paise per ticket for the reserved class and 10 Paise per ticket for the second class in respect of the tickets sold for the said quarters was held to be payable. The appellant filed an appeal before the Commercial Tax Officer, Anantapur, who allowed the appeals on 28-9-1983. The Deputy Commissioner, Commercial Taxes, Kurnool (The 1st respondent) in exercise of his power under Section 9-D of the Act revised the orders of the Appellate Authrity after issuing the show-cause notice and considering the objections of the appellant, set aside the same and restored the order of the 2nd respondent by Proceedings No.Re.801/85.F1, dated 21-7-1988. Aggrieved by the said order of the 1st respondent the appellant preferred this special appeal.