LAXMAN TALKIES YEMMIGANUR Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) This writ petition is filed seeking a writ of mandamus or any other appropriate writ or direction declaring the proceedings dated 16-3-1996 issued in G.O. Ms. No.l33/MA by the first respondent as illegal, arbitrary and consequently direct the 3rd respondent not to collect the difference in tax from 20- 3-1996 to 27-3-1997 and pass such other order or orders as are deemed fit and proper in the circumstances of the case.

(2.) Petitioners, numbering seven, are owners of cinema theatres situated in Yemmiganur Town of Kurnool District. The Yemmiganur Municipality was second grade Municipality. The Government in G.O. Ms. No.790 dated 29-12-1995 prescribed the rate of entertainment taxes for theatres situated in various Municipalities in the State of Andhra Pradesh. Entertainment tax is levied at different rates basing on the gradation of the Municipality. In the State of Andhra Pradesh, Municipalities are categorized as Municipal Corporations, Selection Grade Municipalities, Special Grade Municipalities, First Grade Municipalities, Second Grade Municipalities and Third Grade Municipalities.

(3.) According to the petitioners, the entertainment tax fixed for Second Grade Municipality of all categories of theatres situated in that Municipality is 16% of the gross collection capacity for show multiplied by 21. At the said rate, all these petitioners claiming to be paying the entertainment tax.