URVASHI CINEMA Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner M/s Urvashi Cinema, a partnership firm having its place of business in the town of Bettiah has by means of this application under Article 226 of the Constitution of India, has prayed for quashing a notice issued under Section 13-C(2) of the Bihar Entertainments Tax Act, 1948 (hereinafter called 'the Act'), by the Assistant Commissioner of Commercial Taxes, Bettiah Circle, and also the order under Section 13 C(2) of the same authority, dated 31.5.1983, contained in Annexure 7, whereby and whereunder an amount of tax liability due to nonpayment of entertainment tax was fixed.

(2.) Before turning to the rival contentions of the parties, it would be appropriate to have a brief survey of some of the facts. The petitioner's firm constructed a cinema house known as 'Urvashi Cinema' at Bettiah. The first exhibition of cinematography films started with effect from 30.7.1982. The population of Bettiah town at the relevant time was less than one lakh. The State Government in exercise of its power conferred on it under Section 10 (2) of the Act had issued a notification in 14th May, 1982 granting exemption from payment of entertainment tax for one year from the date of the first cinematography exhibition to a newly constructed cinema house at a place having less than one lakh of population according to 1981 census. It is claimed that in view of the notification, the petitioner was not required to deposit entertainment tax till 30th July, 1983.

(3.) Further case is that having regard to the aforesaid notification regarding exemption, the District Magistrate, Bettiah, also approved the admission fee for different classes of the cinema which would be evident from the letter of the said authority dated 20.7.1982 contained in Annexure 3.