UMA TALKIES Vs. STATE OF BIHAR

JUDGEMENT

(1.) THESE writ petitions have been filed challenging the vires of the provisos to Section 3A and Section 3B of the Bihar Entertainments Tax Act, 1948. The challenge to the vires however, was given up at the time of hearing. Instead, the grievance was confined to the levy of tax in terms of the aforesaid provisos on different grounds. In order to understand the nature of the controversy, it would be apt to first notice the legislative history of the relevant provisions.

(2.) THE Bihar Entertainments Tax Act, 1948 (hereinafter called 'the Act ') has been enacted to make law relating to imposition of a tax on amusements and entertainments in the State of Bihar. Section 3 which contains the charging provision of the Act empowers the State Government to levy tax on entertainments and makes the proprietor of an entertainment liable to pay the same. By Bihar Ordinance 9 of 1985, Section 3A and Section 3B, amongst other sections, were inserted to provide for consolidated payment of the tax and compounding of the tax respectively, The said Ordinance was replaced by Ordinance 18 of 1985 and later by Bihar Finance Act, 1985 (Act 4 of 1985). While continuing Sections 3A to 3F inserted by the said Ordinances, the Act introduced provisos in Sections 3A and 3B. By virtue of the said provisos, inter alia, the tax payable either under Section 3A or Section 3B for each show was not to be less than the highest amount or tax payable during any of the three preceding years. A new proviso was also added in Section 4 providing that where the tax is levied under Sections 3A and 3B, the proprietor shall not be entitled to collect any amount exceeding the tax calculated at the rate notified under Section 3(1) as tax from persons admitted to the entertainment. In order to make this judgment self -contained, it would be appropriate to notice the provisions of Section 3A and 3B so far as relevant, as they stood at the relevant time as hereunder: -

(3.) THE amended provisos read as follows: ''