UNITED PICTURES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THESE two writ petitions Nos. 1217 of 1981 and 1210 of 1981, filed under Article 226 of the Constitution of India by M/s United Pictures and M/s T. Naveen Pictures respectively, involve common questions of law and facts. They are, therefore, disposed of by a common judgment.

(2.) WRIT Petition No. 1217 of 1981 relates to the film 'bin Maa Ke Bache' and the writ petition No. 1210/81 appertains to the film "kranti". M/s K. S. Enterprises, Motion Picture Producers, Bombay, producer of the film 'bin Maa Ke Bache' moved an application to the Government of Raj. for exemption of the exclusion of the film from payment of entertainment tax under the provisions of s. 7 of the Raj. Entertainment (Advertisement) Tax Act, 1957 (hereinafter referred to as 'the Act of 1957' ). The Government, after considering the material placed before it, vide order dated 25th February, 1981 (Annexure 7), granted exemption from payment of entertainment tax along with additional entertainment tax for a period of six months. The above noted order was published in the Rajasthan Gazette. In the terms of the order the petitioner was required to produce a bank guarantee in the sum of Rs. 10,000/- and the same was produced. The case of the petitioner, M/s United Pictures, is that prior to (he passing of the above noted order, dated 25th February, 1981 (Annexure 7), it purchased three prints of "bin Maa Ke Bache". In view of the exemption from payment of entertainment tax, it further purchased four extra prints of the film in order to avail itself of the benefit of the exemption and for that purpose it paid an extra sum of Rs. 1,37,000/ -. It also required a sole distributorship i. e. the right of the letting out on hire the films in the State of Rajasthan. It entered into agreements with the proprietors of various cinema houses with an express condition that the exhibition of the picture would be 'tax free'. On 30th July, 198!, the Government of Rajasthan, after revising its opinion, passed another order, Annexure 9, whereby the exemption of recovery of entertainment tax and additional tax was withdrawn and the previous order, dated 25th February, 1981, relating to the picture 'bin Maa Ke Bache" and order dated 20th April, 1981 pertaining to film "kranti" relating to the exemption from payment of tax were cancelled.

(3.) I will first deal with the question of locus standee and thereafter I will deal with other points raised by the petitioners. The petitioners' contention is that they were interested in exhibition of the films in the cinema houses throughout Rajasthan for a period of six months in terms of the exemption of entertainment tax and additional tax granted to them by the State Government.