VIJAYA TALKIES Vs. APP DY COMMISSIONER

JUDGEMENT

(1.) This revision is preferred under S. 9-D of the A.P. Enter tainments Tax Act (for short, 'the Act').

(2.) The petitioner - M/s. Vijaya Talkies - is a permanent theatre at Kadiri. An assessment order was made on 30-1-87 under S. 9-A of the Act, by the Assistant Commercial Tax Officer, Kadiri, respondent No. 2 herein. By this assessment order, the petitioner was made liable in a total sum of Rs. 76,898/- which is made-up of two amounts, namely, Rs. 36,018/- being the difference of tax payable by the petitioner for the period 1-1-84 to 23-3-84, and the other Rs. 40,880/- being the difference of the sum payable by the petitioner for the period 16-6-84 to 31-3-85.

(3.) Section 4 is the charging section in the Act. Upto 1-1-84, the tax was collected on the basis of number of tickets actually sold for each show except in cases where a theatre was eligible to and did enter a composition agreement as contemplated by S. 5. S. 4 underwent a radical change on and with effect from 1-1-84 by virtue of an Ordinance which was later replaced by an Amendment Act. According to the system of taxation enforced from 1-1-84, the tax is collected on the basis of gross collection capacity of the theatre - and not on the number of tickets actually sold. The gross collection capacity of a theatre is ascertained in the specified manner and a particular percentage thereof is collected on the tax for each show. The percentage varies with the grsdation of local authority - the highest in Municipal Corporations areas and the lowest in Gram Panchayats. S. 5 (as amended) however, provides an alternate mode of collection of tax. If an exhibitor opts to be governed by S. 5, the tax payable is determined on a weekly basis. The weekly tax is determined in the manner prescribed in S. 5 which works out at a rate lesser than the rate in S. 4. The exhibitor is free to screen as many number of shows as he wishes - the weekly tax remains constant. The option once given remains in force till the end of the financial year in which the option is permitted.