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Challenge to imposition of show tax on establishments using video for cinema films exhibition. Interpretation of notification imposing show tax. Estoppel in tax imposition. Assessment and adjudication procedures for show tax. Comparison of statutory provisions for show tax imposed by corporations and local bodies. Analysis: The judgment addressed multiple issues concerning the imposition of show tax on establishments using video for cinema films exhibition. The petitioner challenged the imposition of show tax by the Punjab State on establishments using video for cinema film exhibition. The petitioner argued that the tax was imposed in violation of sections 61 and 62 of the Punjab Municipal Act, 1911, and that no machinery for assessment or adjudication of disputes was provided in the notification. The petitioner also claimed an implied assurance from the State that no further tax would be levied beyond the entertainment tax. The respondents refuted these claims, stating that no such assurance was given, and the Municipal Committee was within its rights to impose the tax. The court analyzed the notification imposing show tax and found that it lacked clarity regarding the persons liable to pay the tax. The court emphasized that taxation statutes must be interpreted based on the explicit language used, without presumptions or implications. The court also examined the assessment and adjudication procedures for the show tax, citing provisions from the Municipal Account Code, 1930, which outlined the appointment of tax superintendents for assessment and dispute resolution. Regarding the invocation of estoppel in tax imposition, the court held that the principle of estoppel cannot be applied in matters of imposing taxes through delegated legislative powers. The court referenced a Division Bench judgment to support this stance. The judgment further clarified that the show tax was imposed by the State under its sovereign powers, not by the Municipal Committee under sections 61 and 62 of the Act. Ultimately, the court allowed the writ petition, quashing the impugned notification imposing show tax. The judgment also addressed similar issues related to show tax and entertainment tax imposed by corporations, highlighting the parallel statutory provisions. The court ruled that the Municipal Committee was not obligated to refund the tax collected from the public, emphasizing the public welfare aspect of tax collection for the betterment of the community.
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