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TMI Blog2007 (7) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... ax at a higher rate on tickets of "dubbed films". Section 3(3A), inserted by (Third Amendment) Act, is a definition clause according to which "dubbed film" means any film for cinematograph exhibition made or produced originally in a language other than Tamil and subsequently dubbed in Tamil language. Section 4H, inserted by such (Third Amendment) Act, is as follows: "4H. Tax on dubbed film.-(1) Notwithstanding anything contained in this Act, there shall be levied and paid to the State Government, a tax (hereinafter referred to as, 'the entertainment tax'), on each payment for admission to any cinematograph exhibition of dubbed film, calculated at the rate of fifty per cent of the gross payment for admission inclusive of the amount of the tax. (2) Notwithstanding anything contained in sub-section (1), there shall be levied and paid to the State Government (except as otherwise expressly provided in this Act) on every taxable complimentary ticket, entertainment tax at the rate specified in sub-section (1), as if full payment had been made for admission to the entertainment according to the class of seat or accommodation which the holder of such taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Tamil Nadu Act 38 of 1994, entertainment tax was levied at the rate of 40 per cent. By virtue of Act 38 of 1994, a classification was made between dubbed films and non-dubbed films and entertainment tax payable in respect of dubbed films was 50 per cent of the gross payment for admission. At that stage, W.P.No. 20229 of 1994 had been filed. However, such writ petition was subsequently withdrawn as the classification between the dubbed films and non-dubbed films was done away by the (Second Amendment) Act, 1998 (Tamil Nadu Act 47 of 1998). However, by virtue of the Tamil Nadu Act 47 of 1998, a classification was made relating to payment of entertainment tax for exhibition of new films and old films at the rate of 30 per cent and 20 per cent, respectively. By virtue of (Third Amendment) Act, provisions have been incorporated providing for payment of entertainment tax in respect of films dubbed in Tamil and in respect of other films. It has been indicated in the counter that films originally produced in other language but, subsequently dubbed in Tamil, stand on a different footing as compared to the films originally produced in Tamil and it cannot be said that the provisions are eit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Andhra Pradesh Entertainments Tax Act, 1939 providing for payment of entertainment tax at the rate of 10 per cent for Telugu films and 24 per cent for non-Telugu films, was in question. In the said case, it was observed: "10. A taxing statute, however, as is well known, is not beyond the pale of challenge under article 14 of the Constitution of India. 11. In Chhotabhai Jethabhai Patel & Co.v.Union of India AIR 1962 SC 1006, it was stated:' (37) But it does not follow that every other article of Part III is inapplicable to tax laws. Leaving aside article 31(2) that the provisions of a tax law within legislative competence could be impugned as offending article 14 is exemplified by such decisions of this court as Suraj Mal Mohta and Co.v.A.V.Visvanatha Sastri [1954] 26 ITR 1 (SC); [1955] 1 SCR 448; AIR 1954 SC 545, and Shree Meenakshi Mills Ltd.v.A.V.Visvanatha Sastri [1954] 26 ITR 713 (SC); [1955] 1 SCR 787; AIR 1955 SC 13. In Kunnathat Thathunni Moopil Nair v. State of Kerala [1961] 3 SCR 77; 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thers had not been. It has not been shown as to why the same theatre where films in different languages are exhibited would be a class apart, only because at different times it exhibits films produced in different languages. Moreover, how Telugu films have been treated as a separate class has not been stated. Although the Legislature enjoys a greater freedom and latitude in choosing the person upon whom and suggest upon which it can levy tax, it is trite that taxing legislations are not immune from attack based on article 14. It is also not the case of the respondent-State that in imposing different rates of tax, they intend to achieve an avowed object envisaged under Part IV of the Constitution of India. 26.. We, furthermore, may take judicial notice of the fact and keeping in view that this case was tagged with other matters where it had been brought to our notice that some States have been making hostile discriminations at the instance of the distributors of the films produced in local languages. The State of Andhra Pradesh imposed the said tax on the said basis which is per se discriminatory in nature. " (emphasis(1) added) Learned counsel for the State has, however, submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducer who has to pay the tax, discrimination is writ large on the face of it and we fail to see any rationale for the purpose of payment of entertainment tax at different rates. A producer, who produces a film in Tamil and dubs such film in other language such as Telugu, English or Hindi and exhibits such film within Tamil Nadu is not required to pay at the rate of 50 per cent. Similarly, a producer, whether within Tamil Nadu or without, who produces a film in any other language such as Telugu, English or Hindi and exhibits such films within Tamil Nadu, is also not required to pay entertainment tax at higher rate. Only a producer who produces a film in any other language such as Telugu, English and Hindi and subsequently dubs such film in Tamil and exhibits the same within Tamil Nadu will be affected by such imposition of entertainment tax at a differential rate. We hardly see any rationale behind such a provision. According to us, there is no basis for classification, far less any reasonable basis nor there is any nexus between the classification and object to be achieved. If the object is to discourage people from watching dubbed Tamil films mainly because such films are ordina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the submission made by the Special Government Pleader that for dubbing a picture no artistic skill is required nor it has the effect of encouraging the local artists. Even for dubbing the film certain amount of skill in the shape of preparing or translating the lyrics, writing new lyrics and writing and recording such dialogues and lyrics is required to be done. At any rate, keeping in view the overriding sentiment that from "Kashmir to Kanyakumari-India is one", such a policy can scarcely be encouraged. As we had already noticed, the burden of taxation is ultimately passed on to the moviegoers and the producers or distributors or exhibitors are merely collecting agents. From the point of view of a moviegoer, it makes no difference to him, whether a film good, bad or indifferent, is made originally in Tamil or such a film made in any other language is subsequently dubbed in Tamil. It is very difficult to fathom as to why a moviegoer, who is very interested in watching a film should be subjected to pay higher rate of entertainment tax merely because the film which he wants to view was originally produced in some other language and was subsequently dubbed in Tamil. From the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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