STATE OF RAJASTHAN Vs. R T T JODHPUR

JUDGEMENT

(1.) These petitions arise out of the order passed by the Rajaslhan Taxation Tribunal dated July 3,1997 by which the Circular issued by the Commissioner of Commercial Taxes dated 14.8.92 (Annx. 2) in the matter of making assessment of entertainment tax under the Rajaslhan 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% 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 theaters at various townships within the State of Rajaslhan 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. The relevant part of the Circular consists in its Paras 2, 6 and 7 which are reproduced hereinbelow:-

(3.) . From the aforesaid contents of the Circular, it is apparent that the Commissioner has first laid emphasis on periodical checking of the cinema halls which have shown their income below the estimated occupancy on the basis of the population of the town. All the theaters are situaled in Udaipur city which is having population above one lakh and therefore fails in clause (3) where such directions for continuous checking is in case of returned occupancy is below 50% of the capacity. Apart from these directions, it contains aforesaid direction to all assessing officers to assess the entertainment tax in respect of each cinema house within the State minimum at the estimated occupancy percentage at each show stated in the circular, irrespective of correctness of return being examined. The circular further contains a direction to disclose reasons in the order for not assessing the lax at the estimated minimum occupancy but below that figure. Therefore, the direction is not to make assessment in the light of material collected at the time of inspection, but the direction is to assess the entertainment tax in respect of cinema house situated in respect of categories of towns at the minimum percentage of occupancy shown in Para No. 2 of the circular and the assessing authority has further been directed to give reasons only in case of not making assessment above minimum slated level.