M RAJA RAO Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The point for consideration in this writ appeal is whether the person exhibiting entertainment shows is liable to pay entertainment tax in spite of he being prevented due to vis-major or by illegal interference by the State or for the reasons beyond licencee's control to admit the persons to entertainment on payment ?

(2.) In order to answer the above question it is appropriate to refer to some of the facts: The appellant constructed a temporary cinema theatre under the name and style "Royal Touring Talkies" at Jangareddigudem, West Godavari District. He entered into an agreement under Section 5 of the A.P. Entertainment Tax Act hereinafter referred to as the Tax Act for payment of entertainment tax with the authorities constituted under the said Act. Pursuant to the agreement he paid tax upto 5-3-1978. When he was exhibiting cinemas one Mr. K. Krishnamurthy constructed a permanent cinema theatre called Lakshmi talkies at Jangareddigudem which is at a distance of 400 metres from the theatre of the appellant. The appellant obtained exemption from the Government to run shows though it is situated within a distance of 400 metres and exhibited the shows till 1-3-1978. Subsequent to this no exemption was granted by the Government. Consequently his request to renew the licence to conduct shows was also refused by the Authorities constituted under the Cinemas (Regulation) Act of 1955 hereinafter referred to as 1955 Act by its order dated 9-2-1978 beyond 1-3-1978. Thus from 1-3-1978 the appellant stopped exhibiting shows in his temporary theatre. His request to grant permission to shift the temporary theatre from the place where it was situated to some other place of Jangareddigudem was also refused. Stopping of exhibiting films was not voluntary but at the instance of the Government, namely, refusing to grant licence under the Cinematograph Act and permission under the Entertainment Tax Act.

(3.) When things stood thus, the Assessment Officer issued notice on 10-2-1980 to the appellant calling upon him to pay entertainment Tax for the period from 12-3-1978 to 2-10-1978 in a sum of Rs.20,145-66 (Rs.649-86 per week). In the notice of demand the authorities also demanded the petitioner to pay interest accrued on the above tax amounting to Rs.4,053-00 holding that under Section 5 (1) of the Tax Act read with Rule 33 of the A.P. Entertainments Tax Rules the tax payable by the appellant was once for all agreed for the entire period of one year irrespective of the fact whether the licencee screened the shows or not.