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TMI Blog2004 (2) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... o exhibit cinema shows. The order, itself, is not produced by the petitioners. But, they have produced annexure 1, an order which refers to the curfew and which permits the theatre owners in general to resume shows from March 21, 2003. The petitioners, who are to pay the compounding fee weekly and in advance, suo motu, deducted the proportionate amounts for the days March 16, 2003 to March 20, 2003 and remitted only the balance sum towards the compounding fee. The authority under the Act called upon them to pay the full compounding fee as per the order of compounding. It was then that the present writ petition was filed seeking a declaration that the petitioners were not liable to pay tax during the period March 16, 2003 to March 20, 2003 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he licensees were entitled to seek a remission for the period during which they could not open the shop notwithstanding a provision in the licence or the Rules that there will be no remission on any ground. According to counsel, the same principle must apply to the case on hand. Learned Government counsel on the other hand submitted that the amount payable under section 3B of the Act was an amount in lieu of the tax payable under the Act and the amount had to be paid irrespective of the number of shows. This was a privilege or benefit extended to a licensee and it was done at the volition of the licensee. Once a licensee had compounded the liability under the Act, he had to pay the compounding ee as fixed, irrespective of the number of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounding involved. Therefore, whether in such cases a remission was permissible did not fall for decision in that case. It appears to us that the whole thing depends on the understanding of the scope of the obligation undertaken by a licensee once he asked for the compounding of his liability in terms of section 3B of the Act. On going through the section 3B of the Act and considering it in the background of what a compounding implies as far as an assessee is concerned, we are of the view that the assessee cannot claim that he is entitled to get back the amount from the compounding fee once he had opted to come within the scheme of compounding his obligation under the Act. In other words, once the liability has been compounded in terms of se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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