STATE OF M P Vs. BHARAT BHUSAN VYAS

JUDGEMENT

(1.) THIS appeal is directed against an order dt. 14.7.1999 in W.P.No.4436 of 1998 by which a writ petition preferred by the respondent was allowed and it was held by the single Bench that the population of Bina Itawa, at the reievant time; before 1999, was less than 50,000 and the compounding duty payable at the relevant time u/s 4(2)(d) of the M.P. Entertainments Duty and Advertisements Tax Act, 1936 (hereinafter referred as 'Entertainment Tax Act') was payable @ 25% of the entertainment duty, calculated on full seating capacity of cinema hall.

(2.) THIS order has been assailed by the appellants on the ground that by notification dt.3.1.1949, under subsection(2) of section 1 of the Entertainments Tax Act, the State Government had extended the provision of Entertainments Tax Act to the Bina Railway Colony, so the aforesaid colony should he included in the local area of Bina-Itawa so the rate of 30% was applicable in the matter and not of 25%. Stating aforesaid it was submitted that the order passed by the Single Bench may be set aside..

(3.) THE learned Single Judge considered various provisions of the Act and found that u/s 5 of the M.P. Municipalities Act, no notification was issued for inclusion of Railway Colony, Bina in Bina-Itawa municipal area, so the population of the railway colony could not have been taken into consideration for ascertaining the compounding duty and the slab of 25% will be applicable and accordingly allowed the writ petition and quashed the order dt.24.12.1997.