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TMI Blog1988 (6) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to such rules as may be prescribed, in the case of video shows, there shall be levied and paid to the State Government, entertainments tax at the rate of one hundred rupees per month." By Act 22 of 1985, the rate of tax was enhanced to Rs. 1,000 per month. Again by Karnataka Act 15 of 1987 the said provision was amended to provide for levy of tax on video shows at the rate of Rs. 2,500 per month in place of Rs. 1,000. This provision is challenged by the petitioners as ultra vires the Act and also on the ground that it is violative of articles 14 and 19 of the Constitution of India. By an amendment sought to the writ petitions, an additional ground is raised that the scheme of section 4B providing for levy of tax on video shows under section 4B is repugnant to the scheme of the levy of entertainment tax as contemplated under the provisions of the Act. It is argued that the levy at a fixed rate of Rs. 2,500 per month does not fit into the scheme of the levy of entertainment tax as provided and envisaged under the Act under which entertainment tax is levied and collected on each admission or on the basis of a composition tax under section 4A, on each show. It is argued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns are provided under section 4B having regard to the fact that the exhibitors of video shows are treated as a distinct class of exhibitors different from the other owners or exhibitors, who pay the tax under section 3 or 4A, in addition to the show tax; that the permits are issued by the District Magistrates under the VCR Rules and the levy of tax on the said licences is provided by the special provisions of section 4B having regard to the fact that the video shows are meant for a smaller number of people at a time and are not exhibited in a regular cinema house, and that, therefore, the insistence on all the other elaborate procedure as are applicable to the other exhibitors of cinema shows is dispensed with. It is also argued that these special provisions are provided in place of and as a substitution for the procedure to levy tax under the Act which is applicable to others. It is also demonstrated in the statement of objections that the levy on video shows, if calculated and levied applying the provisions of either section 3 or 4A, the tax effect on the petitioners per month on the basis of the number of shows or on each admission, would be far heavier. The writ petitions are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority to act judicially in the matter of assessment proceedings. Nor is there any right of appeal provided to such assessees as may feel aggrieved by the order of assessment." (ii) State of Andhra Pradesh v. Nalla Raja Reddy AIR 1967 SC 1458, in which a flat rate of levy under the Andhra Pradesh Land Revenue (Additional Assessment) and Cess Revision Act was struck down by the Andhra Pradesh High Court was upheld by the Supreme Court. The Supreme Court held that the whole imposition of assessment was left to the arbitrary discretion of the officers not named in the Act without giving any remedy to the assessees for questioning the correctness of any of the important stages in the matter of assessment such as ayacut, taram, rate or classification or even in regard to the calculation of the figures. The Act was struck down as offending article 14. The other challenge made to section 4B of the Act is that the special provisions are liable to be struck down on the sole ground that they do not provide for an appeal under the Act nor is any provision made for reduction or waiver of the tax depending upon various factors warranting such reduction or waiver. The learned counsel relies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f video shows. It is also the scheme of the levy that none of the provisions of sections 3, 3A, 4 or 4A, which provide for the procedure and mode of levy on other types of entertainments are concerned, is made applicable to the video shows since section 4B is enacted as a special procedure and in substitution for the regular procedure and mode of levy. As already stated in detail that the regular mode of levy under sections 3 and 3A or 4 or 4A of the Act is on the basis of each admission or on the basis of population. Even in cases falling under section 4A, the exhibitors are given an option for the levy under section 3 or under section 4A, namely, the payment of composition tax on the basis of the population. Thus, it can be seen that under the charging section the Act provides for levy of entertainment tax on each admission and this levy is passed on to the patrons. But, if the exhibitor exercises an option to pay the tax under section 4A, then the tax is levied in the mode provided under the said provision, namely, on certain percentage of rate on the gross collection capacity (GCC), as specified therein. Therefore, the important point that arises for consideration is, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a writ petition and it is the prerogative of the legislature to impose the tax at any fixed rate as applicable to all the persons who run video shows. In support of this contention Sri Dattu, the learned Government Pleader, has cited the following decisions: (i) Jagannath v. Union of India AIR 1962 SC 148: Wherein, it was held by the Supreme Court that heavy tax is not a challenge which can be entertained by courts. (ii) Y.V. Srinivasamurthy v. State of Mysore AIR 1959 SC 894: The Supreme Court did not go into the question regarding quantum since it was neither argued before the High Court nor demonstrated how it was excessive. Therefore, this case does not help the respondent. (iii) Avinder Singh v. State of Punjab AIR 1979 SC 321: Under the Punjab Municipal Corporation Act, 1976, levy of tax on Indian made foreign liquor at flat rate of Re. 1 per bottle was upheld by the Supreme Court. The facts are distinguishable and has no bearing on the present case. (iv) B.A. Jayaram v. State of Karnataka (W.P. Nos. 5224 to 5231 of 1987 and connected cases disposed of by this Court on 819th and 10th September, 1987): In which the levy of Motor Vehicles Taxation (A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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