STATE OF RAJASTHAN Vs. RAJASTHAN TAXATION TRIBUNAL

JUDGEMENT

(1.) THESE petitions arise out of the order passed by the Rajasthan Taxation Tribunal dated July 3, 1997 by which the circular issued by the Commissioner of Commercial Taxes dated August 14, 1980 (annexure 2) in the matter of making assessment of entertainment tax under the Rajasthan Entertainment (and Advertisements) Tax Act, 1957 has been quashed by the Tribunal and the assessment orders in which the returned receipt of sale by tickets has not been accepted in the light of aforesaid circular and enhancement has been made as intended under the circular by estimating the minimum receipts at 50 per cent of the sitting capacity, were set aside and all cases were remanded to the assessing authority for passing fresh assessment orders in accordance with law.

(2.) THE impugned circular, as a matter of fact, after showing concern about the less recoveries from the cinema theatres at various townships within the State of Rajasthan far below their sitting capacities and after instructing the officer to have periodical checking and laying down the norms for conducting regular checking where returned collection show less than the minimum estimated occupancy during the show, has issued definite instructions about assessing the tax on minimum estimate which we shall presently refer to.

(3.) THE only contention raised by the learned counsel for the Revenue is that in none of the assessment orders the Commercial Taxes Officer has referred to the circular in question, and therefore, it ought not to be assumed that the assessment has been made on the basis of circular. However, the arguments fails to impress in the totality of the circumstances. THE Deputy Commissioner (Appeals) found as a fact that no reason has been given for not accepting the correctness of the return filed by the assessee and whatever is stated with reference to other towns is de hors any material that was before the assessing officer.