KRISHNA CHITRA MANDIR Vs. ENTERTAINMENT TAX OFFICER

JUDGEMENT

(1.) Heard the learned Counsel for the petitioner and learned Special Government Pleader for Commercial Taxes.

(2.) The petitioner is an exhibitor of films in Uppal. He was paying entertainment taxes under Section 5 of the Andhra Pradesh Entertainments Tax Act, 1938 (sic. 1939) (in short APET Act). After obtaining permit in Form No. IV, the prescribed authority has granted permission for making weekly payment of Rs. 4883/- for the financial year 1987-88. The Government of Andhra Pradesh vide G.O.Ms. No. 233, dated 19-2-1987, upgraded the Uppal Gram Panchayat into a second grade Municipality. The entertainment tax can be varied under Section 5(6) of the APET Act, inter alia when the local area in respect of which permission is granted, is upgraded.

(3.) On 2-11-1987, the Entertainment Tax Officer (in short ETO) has issued a notice calling upon the petitioner to file objections for enhancement in rate of tax for the period from 1-2-1987 to 6-11-1987 because the concerned area was upgraded as a second grade municipality. On 24-11-1987, the ETO varied the tax in proceedings Rc. No. APET/87-88 and assessed the entertainment tax at Rs. 96,802/-. The final order dated 24-11-1987 was served on the petitioner by affixing it on the premises on the same day. The petitioner of late obtained a copy of the final order on 16-5-1991 and preferred an appeal before the Appellate Deputy Commissioner (ET), Secunderabad Division, Hyderabad. The appeal bearing No. 56/91-92 was partly allowed on 28-3-1995. The appellate authority found that the petitioner was not liable to pay tax amounting to Rs. 23,888/- for the period from 1-2-1987 to 31-3-1987. But, he was liable to pay the difference of tax for the period from 1-4-1987 to 5-11-1987 amounting to Rs. 72,914/-, because notice issued on 2-11-1987 was served on the appellant on 8-11-1987 i.e. during the period of option which was from 1-4-1987 to 31-3-1988.