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TMI Blog2007 (5) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh made an Act known as "the Andhra Pradesh Entertainments Tax Act, 1939". The said Act was enacted in terms of entry No. 62 of List II of the Seventh Schedule to the Constitution of India which reads as under: "62. Taxes on luxuries including taxes on entertainments, amusements, betting and gambling." It is not in dispute that the rate of tax in respect of Telugu film was fixed at 10 per cent and that of non-Telugu film has been fixed at 24 per cent. Representations were made to the Government of Andhra Pradesh to withdraw the said purported discriminatory tax by the Andhra Pradesh State Film Television and Theatre Development Corporation Ltd., in terms of its letter dated 9th/11th December, 2002 addressed to the Secretary to the Government, GA (I&PR) Department, Secretariat, Hyderabad as also other bodies and parliamentarians, which was not acceded to. The decision of the State was communicated to the petitioner by the Principal Secretary to the Government in terms of its letter dated September 19, 2003 stating: "I invite attention to the reference cited and inform that Government have carefully examined your representation for grant of tax relief to the Hindi fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tri [1955] 1 SCR 448; AIR 1954 SC 545 See [1954] 26 ITR 1 (SC)., and Shree Meenakshi Mills Ltd., Madurai v.A.V. Visvanatha Sastri [1955] 1 SCR 787; AIR 1955 SC 13 See 91954] 26 ITR 713 (SC). In Moopil Nair v. State of Kerala AIR 1961 SC 552, the Kerala Land Tax Act was struck down as unconstitutional as violating the freedom guaranteed by article 14. It also goes without saying that if the imposition of the tax was discriminatory as contrary to article 15, the levy would be invalid." A taxing statute, however, enjoys a greater latitude. An inference in regard to contravention of article 14 would, however, ordinarily be drawn if it seeks to impose on the same class of persons or occupations similarly situated or an instance of taxation which leads to inequality. The taxing event under the Andhra Pradesh Entertainments Tax Act is on the entertainment of a person. The rate of entertainment tax is determined on the basis of the amount collected from the visitor of a cinema theatre in terms of the entry fee charged from a viewer by the owner thereof. It is not the case of the respondent that the imposition of different rates of entertainment tax is justified on any ground other than l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89 STC 201 (SC)., this court held: "Article 14 of the Constitution enjoins upon the State not to deny to any person 'equality before law' or 'the equal protection of laws' within the territory of India. The two expressions do not mean the same thing even if there may be much in common . . . Equality before law is a dynamic concept having many facets. One facet-the most commonly acknowledged-is that there shall be no privileged person or class and that none shall be above law. A facet which is of immediate relevance herein is the obligation upon the State to bring about, through the machinery of law, a more equal society envisaged by the Preamble and Part IV of our Constitution. For, equality before law can be predicated meaningfully only in an equal society, i.e., in a society contemplated by article 38 of the Constitution, which reads: 38.. State to secure a social order for the promotion of welfare of the people.-(1) The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life. (2) The State shall, in part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formulation of a taxation policy. Taxation is not now a mere source of raising money to defray expenses of Government. It is a recognised fiscal tool to achieve fiscal and social objectives. The differentia of classification presupposes and proceeds on the premise that it distinguishes and keeps apart as a distinct class hotels with higher economic status reflected in one of the indicia of such economic superiority . . ." (emphasis supplied) The fact of the matter remains that it is difficult to laud the objective of the taxation statute in the instant matter which differentiates on the basis of language alone. This is definitely derisive of social attributes of the polity and article 14 in its basic form, i.e., equality before law. If any classification seeks to take refuge of exception under reasonable differentia category under article 14, it must stay clear of the broad constitutional mandate as mentioned hereinbefore. In the instant matter, the classification solely on the basis of language, fails in its initiative to be called reasonable. The classification thus is arbitrary and as such violative of article 14 of the Constitution of India. In Venkateshwara Theatre v. Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e thereof . . ." This court in this case is not concerned with the application of test of reasonableness while considering the constitutionality of a statute. The test of reasonableness, however, would vary from statute to statute and the nature of the right sought to be infringed or the purpose for imposition of the restriction. It is also not a case where a section of the people have been picked up and they form the constituted class by itself. It is furthermore not a case where the State has picked up and chosen districts, objects, methods in the matter of imposition of tax. However, although a legislative body has a wide discretion, and taxing statute may not be held invalid unless the classification is clearly unreasonable and arbitrary but it is also trite that class legislation is that which makes an improper discrimination by conferring particular privileges. "Class legislation is that which makes an improper discrimination by conferring particular privileges upon a class of persons, arbitrarily selected from a large number of persons, all of whom stand in the same relation to the privilege granted and between whom and the persons not so favoured no reasonable distinction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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