ASHOK CHITRA (P) LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition is directed against the order dated 14.9.94 (Annexure 3), passed by the learned Assistant Commissioner of Commercial Taxes, Patna, whereby demand to the tune of Rs.10,83,050.35p., under the provisions of Section 3A of the Bihar Entertainment Tax Act 1948 (hereinafter referred to as the Act'), read with the Bihar Entertainment Tax Rules 1984 (hereinafter referred to as the Rules'), has been raised against the petitioner.

(2.) A brief statement of facts essential for the disposal of the writ petition may be indicated. The petitioner is a private limited company incorporated under the provisions of the Companies Act. It is engaged in the business of public exhibition of cinematograph films in its theatre in the township of Patna. It is liable to pay taxes under the Act and the Rules. It relates to the period 1992-93. Section 3-B of the Act provides for compounding of taxes which in substance means that the proprietor shall have the benefit of payment of a fixed sum of tax prescribed by the authority. The payment has to be made in instalments, once every week, and as per the provisions of the Act and the Rules.

(3.) While assailing the validity of the impugned action, learned counsel for the petitioner has taken us through the scheme of the Act and the Rules, and section 12 of the Bihar & Orissa General Clauses Act, 1917. He also relies on the judgment of the Supreme Court in Mohd Ayub Vs. State of Uttar Pradesh, 2010 AIR(SC) 431. He lastly relies on the provisions of section 15 of the Bihar Buildings (Lease, Rent and Eviction) Control Act, and the following reported judgments:-