KODURU BHASKARA RAO AND KUNTAMALLA BUCHI RAYUDU Vs. COMMERCIAL TAX OFFICER NIDADAVOLU WEST GODAWARI DISTRICT

JUDGEMENT

(1.) THESE two writ petition raise questions about the meaning and scope of section 5 of the Andhra Pradesh Entertainments Tax Act, 1939. Under section 4 of that Act, entertainment tax is leviable on the gross collection of every show held in the theatres specified in column (2) of the table appended to that section and located in the local area specified in the corresponding entry in column (1) of the table. Under section 5, the option is given to the theatre owners to pay tax in lieu of tax payable under the aforesaid section 4. The tax so payable is specified in the table given to section 5. Section 5 says :

(2.) NOW in the table to section 5, entry (a) deals with municipal corporations and Secunderabad cantonment area and contiguous area of 6 kms. We are not directly concerned with that area. We are concerned with the next entry (b), viz. , selection grade municipalities and the contiguous area of 6 kms. thereof. The question is as to the meaning of the contiguous area of 6 kms. Now the authorities in this case are attempting to collect tax under section 5 from these two writ petitioners at the rate appropriate for a theatre situated within the selection grade municipalities and the contiguous area of 6 kms. thereof. Undoubtedly these two theatres are situated within 6 kms. of Rajahmundry which is a selection grade municipality. But these two petitioners have their theatres situated within a third grade municipality called Kovvur which is dealt with by entry (f) of that table. The rate of tax payable by the theatres located within the selection grade municipalities and the contiguous area of 6 kms. is much higher than the rate of tax payable by the theatres situated within the third grade municipalities and the contiguous area of 2 kms. thereof. The petitioners, therefore, contend that their theatres should be charged under entry (f) and not entry (b ).

(3.) FOR these reasons, we are of the opinion that these two theatres which are located within Kovvur municipality should not be made liable to pay entertainment tax under entry (b) of the table of section 5 to Rajahmundry municipality and that they should be liable to pay tax only under entry (f) to Kovvur municipality. In terms indicated above, a writ will issue in each of the cases. Both the writ petitions are allowed. No costs. Advocate's fee Rs. 250 in each. Writ petitions allowed. .