BHUPINDER SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) CONSTITUTIONAL validity of the Punjab Entertainment Tax (Cinematographic Shows) Amendment Ordinance, 1993, (Ordinance No. 4 of 1993) Punjab Entertainment Duty (Amendment) Ordinance 1993, (Ordinance No. 5 of 1993), notifications issued thereunder and under Punjab Entertainment Tax (Cinematographic Shows) Amendment Act, 1994 and Punjab Entertainments Duty (Amendment) Act, 1994, being Acts Nos. 20 and 21 of 1994, have been challenged in this bunch of writ petitions mainly on the ground of legislative incompetence of the State Governor and the State Legislature. It is submitted that the imposition of lump -sum entertainment duty and Show -Tax was unconstitutional. Constitutional validity has also been challenged on the ground of being contrary to the guarantee of equality enshrined under Article 14 of the Constitution of India. It is contended that vide the impugned provisions, the entertainment -duty and Show Tax have been clubbed together the same being contrary to the constitutional mandate are liable to be set aside. The petitioners have further urged that as they have not been given any option to be either bound by the new Act or under the old Act, the amending provisions being beyond the scope of legislative competence of the respondents were liable to be quashed. It is further submitted that as the liability to pay the tax has been shifted from cinema viewers to the cinema owners, same being contrary to Entry No. 62 of List II of Seventh Schedule of the Constitution was void and did not bind the petitioners.

(2.) IN writ petition Nos. 12517, 12990, 12986, 12987, 12988, 13188, 13608, 13609, 13640, 13698, 13454, 13979, 13980, 13473, 13897, 13664, 13472, 13700, 13123, 13760, 13343, 13702, 13759, 13607, 12939, 13344, 13699, 13671, 13321, 13287, 13652, 13651, 13701, 14265 of 1993 and 99, 1649, 2496, 3046, 12313, 7438, 7439, 10360, 17342, 2495, 7550, 3837, 7549, 3619, 13152 & 13163 of 1994 constitutional validity of 1993 Ordinance has been challenged, whereas in writ petition Nos. 11210, 18576, 18154, 15348, 10855, 10857, 11165, 12723, 11730, 11729, 12317, 15349, 12726, 12356, 13542, 13503, 17636, 11164, 11181, i2724, 17396, 11160, 11057, 12142, 13481, 11179, 11055, 11380, 11157, 11162, 13417, 12358, 10881, 11159, 10834, 11161, 11376, 11379, 11381, 14743, 14742, 17482, 11377, 11617, 15347, 15050, 10856, 10854, 10879, 13755, 12725, 10858, 11156, 10668, 11918, 11163, 11158, 11155, 10882, 10880, 11292, 11293, 11056, 10668, 11154 of 1994, 13621 of 1993 and 2145, 3606, 2099 of 1995 the provisions of Punjab Ordinances No. 2 & 3 of 1994, which were enacted as Punjab State Act Nos. 20 & 21 of 1994 and the notifications issued thereunder, have also been assailed on the grounds noted herein above. The action of the respondents is also alleged to be contrary to the principle of "Promissory Estoppel."

(3.) RESPONDENT -State had also enacted a statute levying entertainment duty, known as 'Punjab Entertainments Duty Act, 1955', being Act No. 16 of 1955. Under the Entertainments Duty Act, respondent No. 1 was entitled to levy entertainment duty not exceeding 125% of the payment for admission excluding 40% of the seating capacity. The mode of payment was prescribed by affixing adhesive stamps on the tickets sold. Vide Ordinance No. 5 of 1993, the respondent -State added Sub -section 5 to Section 11 of the Entertainments Duty Act on September 29, 1993 and simultaneously issued a notification laying down the lump -sum entertainment tax payable by cinema houses in the State of Punjab. The earlier notification dated May 3, 1978, was superseded. It is contended that the said subsequent notification was issued without prior publication of a draft thereof, as required under the relevant provisions of law.