AMARDEEP PICTURES Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioners in these two writ petitions stand to lose the licences for their respective cienmas, not because of any wilful default on their part but apparently due to mis -interpretation of a judgment of this court by the Bihar Motion Pictures Association, of which the petitioners in the two cases are members. It seems that the Association led the two petitioners to believe that it was open to them to price their cinema tickets at rates lower than those fixed by the Government without any prior approval of the licensing authority (the Dist. Magistrate). They did so. But at the time of renewal of the licences the Dist. Magistrate directed them to deposit the differential amount of entertainment tax leviable on the basis of the ticket rates fixed under the Government notification because the ticket rates were lowered by the petitioners without prior approval. On their failure to deposit the differential amount of tax he rejected the petitioners ' application for renewal of their respective licences, and directed for the closure of the two cinemas. The petitioners, aggrieved by the orders of the Disit. Magistrate, have come to this court seeking suitable reliefs.

(2.) BY a circular letter, dated July 31, 2001 issued by the Joint Secretary in the Department of Urban Development, Government of Bihar, addressed to all the Dist. Magistrates, the State Government, under rule 27 of the Bihar Cinemas (Regulation) Rules, 1974 revised the rates of cinema tickets for cinemas in towns and urban centres falling under different categories. (The revision of rates of cinema tickets was made after seven years, the previous rates having been fixed by circular letter, dated July 29, 1994). On issuance of the circular letter, dated July 31, 2001 and on the basis of certain directions given by the High Court in a case pending before it at that time, the Dist. Magistrate, Begusarai (where two cinemas, presently before the court, are situate) convened a meeting of all cinema owners of the district on 28.8.2001. In that meeting the rates of cinema tickets for the district were fixed as per the Government decision and the Cinema Magistrate, Begusarai accordingly issued memo no. 1868, dated 31.8.2001 notifying the rates. The Commercial Taxes Department was also informed that entertainment tax would be paid by the cinema -owners on the basis of the new rates fixed under the memo, dated 31.8.2001.

(3.) THE petitioners seemed to believe that for fixing the rates of tickets lower than those fixed by the licensing authority no prior permission or approval was required and they could do so on their own. The petitioners, therefore, did not move the licensing authority for his permission or approval but simply gave information in this regard both to the licensing authority and the taxing authorities. The petitioner in CWJC No. 3953 of 2003 sent the following letter which was received in the office of the Dist. Magistrate on 19.7.2002 : To, The District Magistrate, Begusarai. Sub : Reduction of present cinema tickets rate. Sir,Most humbly we request you that since we have increased our cinema tickets rates last time as fixed by the cinema owners, the number of cinema visitors have decreased highly. We, therefore, request you that we are reducing our ticket rates as per Hon'ble High Court's orders. Present Ticket Rate Proposed Ticket Rate D.C. Rs. 12/ - only D.C. Rs. 10/ - only. R.S. Rs. 8/ - only R.S. Rs. 7/ - only. This is for your kind information.