KHAJA FIAUDDIN Vs. JOINT COLLECTOR

JUDGEMENT

(1.) In this writ petition filed as long back as in October, 1988, the petitioner has questioned the legality of the order dated 26-10-1988 passed by the respondent-Joint Collector revoking the licence granted to him to exhibit the Cinemas in exercise of power under Section 10(2)(b) of A.P. Cinemas Regulation Act. The impugned action was taken on the ground that the petitioner had fallen into heavy arrears of entertainment tax and the arrears were not cleared despite the conditional orders passed by the High Court in various writ petitions. The respondent who is the licensing authority under the Act therefore concluded that the petitioner violated condition No.46 of the B-Form Licence.

(2.) It is not in dispute that the petitioner is still in arrears. This Court granted interim direction permitting the petitioner to exhibit the films on condition of payment of Rs.50,000.00. It is not known whether the petitioner paid that amount. It is also not known whether the petitioner's original licence had expired or renewal granted. Be that as it may, irrespective of the subsequent developments, we would like to decide the writ petition on merits.

(3.) The learned Counsel for the petitioner contends that the power under Section 10(2)(b) ought not to have been exercised by the respondent without there being a finding by a Court of law that the licensee committed an offence of non-payment of tax under the Act. Section 10(2)(b) enables the licensing authority to revoke the licence if the licensee has without reasonable cause failed to comply with any of the provisions of the Act or the Rules or any of the conditions or restrictions, subject to which the licence has been granted. Condition No.46 of the Licence enjoins that "the licensee shall not commit any offence punishable under A.P. Entertainment Tax Act." Failure to pay tax due within the prescribed time is an offence for which punishment is provided under Section 14 of the said Act. On conviction, the Magistrate can impose a fine which may extend to Rs. 1,000.00 without prejudice to his liability to pay the tax. The learned Counsel submits that unless the petitioner is convicted after the Magistrate duly finds him guilty of the offences the Licencing Authority cannot assume that an offence has been committed under the A.P. Entertainment Tax Act. We do not find any force in this contention.