SREENIVASA TALKIES Vs. A C T O

JUDGEMENT

(1.) In these three writ petitions, the petitioners seek the issue of a Writ of mandamus restraining the respondents from collecting entertainments tax levied under the Andhra Pradesh Entertainments Tax Act for different quarters pursuant to the notices impugned in each of the writ petitions and also for a direction to the 1st respondent not to revoke Form IV issued under Rules 20 and 21 of the Entertainment Tax Rules.

(2.) The writ petitions have been filed by the three proprietors of three theatres in Yemmiganur. Each of the writ petitioners was submitting weekly returns in Form II and entertainments tax was being levied on the basis of the said Returns. The respondents levied additional tax invoking the provisions of Section 9-A (1) of the Act. As the tax levied was not paid, it appears that the respondents took proceedings under the Revenue Recovery Act for recovery of the Tax. As the concerned authorities were not duly empowered in that behalf under the Revenue Recovery Act, the proceedings for recovery of tax under the Revenue Recovery Act had to be dropped. Thereafter, the respondents issued notices dated 12-9-1978 to the petitioners stating that as the arrears of entertainments tax were not paid, they would revoke the Form IV permit given to the petitioners. The petitioners have thereupon filed these writ petitions challenging the levy of tax under Section 9-A of the Act by making best judgment assessment and also the impugned notices issued for revoking the permits issued to the Form IV.

(3.) Sri E. Ayyapu Reddy, the learned counsel for the petitioners contended that no grounds are made out for invoking the provisions of section 9-A for reopening the assessments already made and completed for the relevant quarters, and that there is no fresh or new material which warrants in voking the prdvisions of Section 9-A of the Act and the Levy of Assessment under Section 9-A is made on fanciful and whimsical grounds and section 9-A cannot bo invoked on the mere ground of change of opinion.