9911796707
TMI Blog1996 (2) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to the State Government on all payments for admission to entertainment, a tax at such rate not exceeding 100 per cent of the payment for admission, as may be notified by the State Government from time to time. Section 4A provides for the levy of advertisement tax. Section 5 speaks of the manner of payment of tax. Section 6, which is an important section for the decision of this case, speaks of admission of viewers to entertainment on the condition of payment of entertainment tax. Sub-section (1) provides that no person other than a person who has to perform some duty in connection with an entertainment imposed upon him by any law or otherwise shall be admitted for payment to an entertainment where the payment is subject to the entertainments tax, except with a ticket stamped with an impressed, embossed, engraved or adhesive stamp (not before used) issued by the State Government for the purpose of revenue and denoting that the proper entertainment tax has been paid. Sub-section (3) leads off with a non obstante clause and provides that its provisions will have an overriding effect upon the provisions of sub-sections (1) and (2). It provides that the State Government may, on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o on August 24, 1994 informed the petitioner-firm that it would have to make the payment of entertainment tax as per the terms of the composition order for the period from August 26, 1994 to September 25, 1994. This letter of August 24, 1994 is illegal in view of the provisions of the Act. This letter was replied to by the petitioner-firm which again on September 2, 1994 took up the stand that the case of the department was unsound and untenable. It has again been averred that the department was practising discrimination against the petitioner-firm because it (department) had already granted such exemption from payment of entertainment tax to a cinema hall at Abu Road known as M/s. Mahaveer Talkies with regard to the exhibition of a Rajasthani film titled Lichhmi Aayi Angane from August 1, 1992 to August 31, 1992. M/s. Mahaveer Talkies was also covered under the composition scheme at the relevant point of time. Respondent No. 4 brought pressure to bear upon the petitioner-firm to deposit the amount of entertainment tax as specified in the composition order. Recovery notices were issued. 4.. In the light of the foregoing legal and factual position, the petitionerfirm prayed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainment imposed upon him by any law or otherwise shall be admitted for payment to an entertainment where the payment is subject to the entertainments tax, except with a ticket stamped with an impressed, embossed, engraved or adhesive stamp (not before used) issued by the State Government for the purpose of revenue and denoting that the proper entertainment tax has been paid. (2) No proprietor shall admit any person to an entertainment without payment for admission thereof or at concessional rates except in accordance with the prescribed conditions. (3) Notwithstanding anything contained in sub-sections (1) and (2), the State Government, may, on the application of the proprietor of any entertainment in respect of which the entertainment tax is payable under this Act, allow such proprietor, on such conditions, as may be prescribed- (a) to compound the tax payable in respect of such entertainment for a fixed sum, or (b) to pay the amount of the tax due- (i) by a consolidated payment of such percentage of the gross sum received by the proprietor or on account of payments for admission to the entertainment and on account of the tax, as the State Government may fix, or (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in connection with the entertainment tax imposed upon him by a law or otherwise shall be admitted to an entertainment without the payment of entertainment tax except on a ticket under the conditions mentioned therein. If the case is covered by sub-section (1) then the petitioner-firm is admittedly required to make weekly payment of tax and deposit it within the department. It causes hardship as well as inconvenience not only to the petitioner-firm or for that matter to any tax-payer as well as to the State Government. The return has to be filed. Accounts are to be kept. There are so many formalities which have to be observed. In order to steer clear of all these formalities sub-section (3) provides for the payment of entertainment tax in a fixed sum of money by the tax-payer under a composition order. Where a proprietor opts for the composition scheme and the State Government agrees to it he is required to deposit with the department a fixed sum of money. But payment of this sum of money is to be made with reference to the entertainment tax which is payable under the Act. The learned counsel for the petitioner-firm places emphasis on the words- entertainment tax is payable under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise. The position would have been otherwise if no exemption had been granted by the State Government under sub-section (2) of section 7. In the fourth place, where there is a clash between two provisions of a statute we have to interpret them in such a way as to harmonize one with the other. In the present case there is no clash between the provisions of section 6 on the one hand and those of section 7 on the other. Both these provisions can stand together and move hand in hand with each other. Both drive at targets different form, but not in conflict, with each other. In the fifth place, the opening paragraph of the composition scheme titled Preliminary lends strength to our considered view that composition order is relatable to entertainment tax payable by a proprietor . This paragraph deserves to be quoted as hereunder: Preliminary: Composition under section 6(3)(a) of Entertainment tax (which includes additional entertainment tax and advertisement tax) payable by a proprietor shall on his application be allowed and necessary order of composition shall be made by the compounding authority in accordance with the relevant provisions contained herein. The words payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders passed by the Additional District Magistrate, how can he be directed to pay the amount for the given period. In one of the cases, i.e., S.B. Civil Writ Petition No. 1790 of 1993 the cinema hall remained closed since the curfew was imposed by the administration. A citizen cannot be made to suffer on account of the compliance of the lawful orders. It would amount to realize an amount from the petitioner for the period for which the cinema hall remained closed for the last show. Order dated January 5, 1993, annexure 6, is quashed. 11. This quote makes it clear that in the absence of collection of tax for the reason which was beyond the control of the tax-payer, viz., the imposition and continuance of the prohibitory order under section 144 of the Code of Criminal Procedure the liability for the payment of tax cannot be enforced. In the present case before us there was no collection of entertainment tax by the petitionerfirm because of the exemption granted by the State Government under section 7(2) of the Act. The causes for the non-collection of tax in these cases may be different from each other, but the fact remains that there was no collection of tax. The ratio of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax which is leviable under sections 4 and 6, but does not contain any reference to sections 4A and 6A which provide for the levy of advertisement tax and additional entertainment tax respectively. The conclusion we come to is that the State Government while issuing the notification and granting exemption under sections 4 and 6 did not grant exemption from payment of advertisement tax and additional entertainment tax. As mentioned earlier, the petitioner-firm was under obligation to pay additional entertainment tax to the tune of Rs. 2,489 and advertisement tax to the tune of Rs. 40 per month. This works out to Rs. 2,529 for the period from August 26, 1994 to September 25, 1994. The petitioner-firm is liable to pay it to the department. 14.. The Act and its provisions constitute a complete scheme of which section 7 is an integral part. It cannot be divorced from the provisions of sections 4 and 6. Once an exemption is granted under this section no entertainment tax can be levied or collected under sections 4 and 6. We allow the petition in part and direct the petitioner-firm to deposit with the department a sum of Rs. 2,529 within a period of 15 days from the date of receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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