1987 (8) TMI 424 - HC - VAT and Sales Tax

Summary

Issues: Challenge to sub-section (6) of section 4A of the Karnataka Entertainments Tax Act, 1958.

The judgment pertains to the challenge of sub-section (6) of section 4A of the Karnataka Entertainments Tax Act, 1958, inserted by Karnataka Act 22 of 1985. The provision requires the exhibitor to produce a certificate from the local authority or any other notified authority if no show is conducted during the week. The petitioner argues that the provision is ultra vires as compliance is impossible due to vagueness regarding the competent authority and issuance of the certificate. The petitioner highlights the practical difficulties and lack of clarity in the provision. The respondent justifies the provision as necessary to prevent tax evasion by exhibitors. The court acknowledges the necessity of preventing tax evasion under section 4A and upholds sub-section (6) as incidental to implementing the Act. However, the court issues a mandamus to the State Government to prescribe the competent authority, procedure for issuance, corresponding obligations, and remedies for exhibitors in case of refusal or delay in issuing the certificate. The court directs that the impugned provisions shall not be enforced until the prescribed directions are complied with.