SHIVAM THEATRE Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) EIGHT partner -ship firms of the petitioners in this writ petition, each one of them is running cinema theatres located within jurisdiction of the Gaddianaram Municipality. Gaddiannaram Municipality was constituted to be a Grade -II Municipality some time in the year 2001. The Government of Andhra Pradesh in G.O.Ms. No. 207 Municipal Administration & Urban Development (Ele. II) Department, dated 22 -04 -2003, declared Gaddiannaram Municipality to be a Grade -I Municipality. Such declaration was made in exercising the powers vested on the Government under Clause (22) of Section 2 of the A.P. Municipalities Act, 1965. Each one of the theatres run by the petitioners herein is liable for payment of entertainment tax under Section 4 of the A.P. Entertainment Tax Act, 1939 (for short 'the Act') and such an amount is payable by the proprietor of the theatre. The expression 'proprietor' is a defined expression under Sub -section (9) of Section 2 of the Act. The details of which may not be necessary for the present purpose.

(2.) UNDER Section 5 of the Act, an option is given to the proprietors of the theatres to pay tax to the State Government every week at the rates specified in the third column of the table attached to Section on the gross collection capacity multiplied by definite integer. The expression gross collection capacity itself is explained under the explanation to Sub -section (1) of Section 5 as follows:

(3.) IT can be seen from the explanation that both the maximum seating capacity of a particular theatre and the maximum rate of payment for admission determined by the licensing authority under A.P. Cinema Regulation Act 1955 are required to be taken into consideration. It is to be seen further that these two factors are to be taken into consideration as they obtained as on the date when on which the proprietor is permitted to pay tax under Section 5 of the Act. Rule 11 -B of the A.P. Cinemas (Regulation) Rules, 1950, contemplates granting of licence to cinema building. It is admitted on all the hands that a normal period of licence is one year; To be renewed thereafter from time to time subject to satisfaction of the licensing authority. Under sub rule (3) (a) of Rule 11 -B of the Rules, 1970, the Licensing Authority either while granting the licence or renewing, is also required to fix the maximum rate for admission for different classes in the theatre. It is further stipulated in sub clause (b) of Rule 11 -B of the Rules, 1970 that the rates so fixed by the licensing authority shall not be increased during the current year of the licence except with an order in writing of the licensing authority permitting such increase.