KOHINOOR EXHIBITOR P LTD Vs. STATE

JUDGEMENT

(1.) These writ petitions raise common question of fact and law and thus are proposed to be disposed of by a common order. The facts are taken from S. B. Civil Writ Petition No. 297/1993.

(2.) The petitioner is running a Cinema in the City of Jodhpur known as Kohinoor Cinema. The State of Rajasthan enacted an Act known as Rajasthan Entertainments and Advertisements Tax Act, 1957 (for short 'the Act) and under Section 4 of the Act tax is leviable at the rate not exceeding 100% of the payment for purposes of admission which is popularly called as entertainment tax. This tax is leviable even on complimentary ticket which is issued by the Proprietor. Section 5 of the Act lays down the manner in which the payment of tax is to be made and is to be calculated depending upon the number of admission. Section 5B deals with the assessment. Section SC deals with re-assessment and Section 6 of the Act deals with admission to entertainments and lays down that no person other than a person who has to perform some duty in connection with an entertainment imposed upon him by any law or otherwise shall be admitted for payment to an entertainments tax except with a ticket stamped with an impressed, embossed, engraved or adhesive stamp not used earlier issued by the State Government for the purpose of revenue. It is also laid down that the Proprietor shall not admit any person without payment for admission thereof except in accordance with the prescribed conditions.

(3.) Next comes sub-section (3) of Section 6, which provides that the Government may on the application of the Proprietor allow such Proprietor on such condition as may be prescribed - (a) to compound the tax payable in respect of such entertainment for a fixed sum, or (b) to pay the amount of the tax due - (i) by a consolidated payment of such percentage of the gross sum received by the proprietor or on account of payments for admission to the entertainment and on account of the tax, as the State Government may fix, or (ii) in accordance with returns of the payments for admission to the entertainment and on account of the tax, or (iii) in accordance with the results recorded by any mechanical contrivance which automatically registers the number of persons admitted. The petitioner has placed on record Annx. 1, which is a scheme that has been introduced by the Government for composition of entertainments tax under sub-section (3) of Section 6 of the Act referred to above. 3A. According to the scheme as projected in paragraph 4, the amount of money for which the tax is payable shall be compounded for the first year and shall be at least 25% more in case of towns with population up to one lac and in other Cinema Houses where the population is higher it would be 15% more than the amount of tax admitted for assessed previous year as may be determined by the compounding authority. For the subsequent year or part thereof, the increase shall not be less than 10%. This is to be applied while keeping in view the licensed seating capacity. The admitted position is that the petitioner offered for composition of entertainments tax and the same was allowed vide office order dated 27-1-1988 for a period of one year with effect from 29-1-1988 to 28-1-1989 and this composition has been extended from year to year. This is further in admitted position that the petitioner is liable to pay entertainment tax to the tune of Rs. 4,18,173.00 and additional entertainment to the tune of Rs. 3177.00 and advertisement tax to the tune of Rs.1038.00, totalling Rs. 4,32,388.00 per annum. The petitioner has admittedly paid the tax in advance up to December, 1992.