PRABHAT TALKIES Vs. THE ENTERTAINMENT TAX OFFICER

JUDGEMENT

(1.) THE petitioner is an exhibitor of films at Visakhapatnam. For the year 1987 -88 the petitioner was issued Form IV permit to pay weekly tax of Rs. 9,226 -00 under Section 5 of the Andhra Pradesh Entertainments Tax Act, 1839. It sought permission of the licensing authority under the Andhra Pradesh Cinemas Regulation Act for renovating the theatre. By proceedings dated 25 -9 -1987 the Joint Collector, Visakhapatnam, granted permission for renovation. According to the petitioner, the theatre was closed from 25 -9 -1987 to 28 -4 -1988 for the purpose of renovation. Therefore, it applied for grant of exemption on 12 -5 -1988 from payment of entertainment tax during the relevant period under G.O. Ms. No. 15 Revenue (s) Department dated 7 -1 -1987 to the Entertainment Tax Officer, Visakhapatnam. According to the petitioner, the Entertainment Tax Officer recommended in its favour for grant of exemption and the application was forwarded to the Commercial Tax Officer, Visakhapatnam and ultimately to the Deputy Commissioner of Commercial Taxes, Visakhapatnam. Thereafter the application was forwarded to the Commissioner of Commercial Taxes. By the impugned order dated 31 -12 -1992 the Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad, rejected the claim made by the petitioner for grant of exemption. Aggrieved by that order, this writ petition is filed. It is submitted by Mr. P. Srinivasa Reddy, learned counsel for the petitioner that the Commissioner of Commercial Taxes has no power to reject the application submitted by the petitioner seeking exemption and his power is limited to either to recommend in favour of or against the petitioner while forwarding the application to the State Government and it is for the State Government either to reject or grant exemption. G.O. Ms. No. 15 Revenue (S) Department dated 7 -1 -1987 provides that subject to the same procedure and conditions laid down in G.O. Ms No. 752, Revenue (S) Department, dated 4 -7 -85 the Government can extend the facility of giant of exemption from the amount of tax payable per week under Section 5 of the A.P. Entertainments Tax Act, 1939 for the entertainments not held in a week due to the closure of the theatre for the purpose of renovation subject to the condition that the proprietor shall give advance intimation of not less than one month of the closure for the purpose of renovation the theatre shall not be used in any other purpose or activity. The application for grant of exemption is forwarded to the Commissioner of Commercial Taxes in view of the procedure contemplated under G.O. Ms. No. 752, Revenue (S) Department dated 4 7 -1985. The procedure provided therein contemplates the examination of the application by the Entertainment Tax Officer in the first instance relating to the correctness, completeness and propriety of the claim for relief and forward the application along with his specific recommendations to the Commercial Tax Officer. So also the Commercial Tax Officer shall examine end forward the same along with his recommendations to the Deputy Commissioner. Thereafter the Deputy Commissioner shall examine and forward the application along with his recommendations to the Commissioner (Commercial Taxes). Finally, it is for the Commissioner of Commercial Taxes to examine the application and forward the application along with the specific recommendations to the State Government. Therefore, the procedure contemplated under this Government Order clearly indicates that the power conferred on the Commissioner of Commercial Taxes is only to examine the application and forward it to the State Government with his specific recommendations either in favour of or against the applicant. But in the instant case, the Commissioner of Commercial Taxes rejected the claim of the applicant. In our view, the order passed by the Commissioner of Commercial Taxes cannot be sustained. The authority that is competent to refuse or grant exemption is the State Government as provided under G.O. Ms. No. 15 Revenue (S) Department dated 7 -1 -1987, The only power conferred on the authorities mentioned in G.O. Ms. No. 752, is to forward the application with specific recommendations as 10 the granting or refusing exemption. In those circumstances, the impugned order dated 31 -12 -1892 of the Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad, is quashed. It is directed that the Commissioner of Commercial Taxes shall forward the application of the petitioner to the State Government for passing appropriate order under G.O. Ms. No. 15 dated 7 -1 -1987 with his specific recommendations as contemplated under G.O. Ms. 752 dated 4 -7 -1985.

(2.) THE Writ Petition is allowed to the extent indicated above. No order as to costs.