9911796707
TMI Blog1989 (11) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... of two amounts, namely, Rs. 36,018 being the difference of tax payable by the petitioner for the period 1st January, 1984 to 23rd March, 1984, and the other Rs. 40,880 being the difference of the sum payable by the petitioner for the period 16th June, 1984 to 31st March, 1985. Section 4 is the charging section in the Act. Up to 1st January, 1984, the tax was collected on the basis of number of tickets actually sold for each show except in cases where a theatre was eligible to and did enter a composition agreement as contemplated by section 5. Section 4 underwent a radical change on and with effect from 1st January, 1984, by virtue of an Ordinance which was later replaced by an Amendment Act. According to the system of taxation enforced f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction in the seating capacity, and having effected the reduction, the petitioner opted to be governed by section 5 of the Act, with effect from 16th June, 1984. The option was accepted and from 16th June, 1984 till 31st March, 1985, the weekly tax calculated according to the table contained in section 5 of the Act, was being collected. Long after the financial year was over, the assessment was reopened on the ground that the reduction in the seating capacity, effected on 16th June, 1984, cannot be taken into account and that the weekly amount payable under section 5 must be calculated without taking into account the said reduction, i.e., with reference to the seating capacity obtaining on 1st April, 1984. On this basis, the authorities are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year and come over again at an appropriate time even during the financial year. The exhibitor expects reduction in gross collection capacity pursuant to his application to the licensing authority for a reduction in the seating capacity or may keep out of the option since the commencement of that financial year till such reduction is effected and then come over under the scheme contemplated by section 5." We must, therefore, hold that the authorities were not justified in law in demanding the said amount of Rs. 40,880 on the aforesaid ground for the period 16th June, 1984 to 31st March, 1985. The learned Government Pleader contended on the basis of sub. rule (12) of rule 27, that it is not open to an exhibitor to opt to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial reasons admit an application if such application is presented at least twenty-four hours prior to the commencement of the entertainment." Form III prescribed by the Rules reads: "FORM III Application for permission to pay tax under sub-section (1) of section 5 in lieu of tax payable under section 4 under the Andhra Pradesh Entertainment Tax Act, 1939. To The Entertainment Tax Officer. ........................ Sir, I, proprietor.................(place of entertainment) situated in.................. taluk, whose particulars are furnished below hereby signify my intention to opt for the payment of a fixed amount of tax payable under subsection (1) of section 5 in respect of the shows to be held in the said theatre. I hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1984 to 22nd March, 1984) is concerned, the position is this While both the original and the appellate authorities say that the petitioner-theatre was governed by section 4-C of the Act, prior to 1st January, 1984, the petitioner denies the same. Be that as it may, counsel for the petitioner agrees that on and from 1st April, 1984, only the amended provision governs his theatre. Now it is not the case of the petitioner that he opted to be governed by section 5 on and from 1st January, 1984, or, at any time till 23rd March, 1984. If so, he is liable to pay tax under section 4, that is, the normal mode of taxation. The authorities say that instead of paying under section 4 (amended section 4) the petitioner continued to pay tax under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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