CHETAK CINEMA Vs. STATE OF RAJASTHAN AND OTHERS

JUDGEMENT

(1.) Heard learned counsel for the parties in all these cases. The petitioner has been assessed to entertainment tax under the provisions of Rajasthan Entertainment Tax Act, 1987 by way of re-assessment for the months of April, 1991 to Sep., 1991. The assessment orders were made separately for each month and hence six separate writ petitions have been filed. The Assessing Authority has found the assessee to be indulging in the activities of tax evasion by keeping duplicate ticket books and utilising duplicate tickets of different shows on the basis of survey conducted on 22nd Oct., 1991. On that material subsequent assessments have also been framed by estimating the tax liability on the basis of his best judgment on the conduct of the assessee that the assessee has indulged in activities of tax evasion by using duplicate sets of ticket books and by utilising duplicate tickets. Consequently, for each months, tax has been assessed and levied and consequent to that. for delayed payment of tax, interest has also been levied and penalty for concealment has also been levied.

(2.) The assessee instead of availing alternative remedy of appeal, has thought it fit to challenge directly the assessment order before this Honourable Court by raising question about constitutional validity of provisions providing for payment of interest as well as on the ground that re-assessment proceedings for assessment period April, 1991 to Sep., 1991 were undertaken vide notice dated 15.3.99 without opportunity of hearing in the manner.

(3.) So far as constitutional validity regarding payment of interest is concerned, the assessee has challenged it because no interest has been provided on refund of the tax if it becomes due to the assessee. Charging of interest on delayed payment of tax is also ultra vires the provisions of Art. 14 of the Constitution of India being discriminatory in nature. For this purpose he has relied on decision of Honourable Supreme Court in the case of Khazan Chand Vs. Smt. Vidyawanti Devi Jain, reported in AIR 1984 SC 762 . It was a case arising under the Jammu and Kashmir General Sales Tax Act. Challenge to the provision of Jammu and Kashmir Sales Tax Act has been made on the ground that it provides payment of interest at the rate different that what is prevailing in other States of Union of India and also that the rate of interest provided for delayed payment of tax is unreasonably high. The court found that payment of interest in the case of default in payment of tax is means of compelling an assessee to pay tax due by the prescribed date. It is mode of recovery and well within the Legislative power of the State. Thus the court sustained provision for levy of interest on delayed payment of tax, as part of just mode of recovery of delayed tax and as a compensatory measure for keeping the public exchequer deprived of timely payment of tax. On the question of discrimination as was raised before the Court, the Court found that if provision of Legislation of every State on a particular topic are to be identical in every respect, there is no purpose in including that topic in the State List and it may as well be included in the Union List. Merely because the provisions of other State laws on the same subject are not identical, cannot make such provisions discriminatory. That is to say that Legislations of different Legislative Authorities are not comparable for the purpose of examining the question of discrimination. That obviously is not a question that has been raised before us.