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TMI Blog2009 (12) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... nauthorisedly realised by her from the cinema goers. The State Government, in order to provide entertainment and boost up cinema in the villages and remote areas promulgated schemes from time to time known as grant-in-aid facility to new cinema halls. By the Government orders dated November 9, 2004, December 7, 1998 and August 11, 2000, the State Government provided grant-in-aid facility to newly constructed permanent cinema buildings subject to the fulfilment of terms and conditions mentioned therein. The petitioner herein applied for and was granted exemption from deposit of entertainment tax under the scheme dated August 11, 2000. In pursuance of the said scheme, the petitioner was provided grant-in-aid facility by order dated September 10, 2001 for a period of five years under the scheme dated August 11, 2000, whereby the petitioner's cinema hall was granted complete exemption from payment of entertainment tax for a period of five years. The licence having been granted to the petitioner, she started exhibition of films being licensee of Raj Palace Phoolpur, Azamgarh under the U.P. Cinematograph Rules, 1951. She was served with a notice dated July 31, 2004 by the Entert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned therein. The petitioner has been provided the benefit of the said scheme by virtue of the order dated September 10, 1991. A conjoint reading of the scheme and the order clearly establishes that the benefit of grant-in-aid has been provided to the new entrepreneurs who have constructed cinema buildings after fulfilling the conditions laid down therein, besides reiteration of the pleas raised in the writ petition. Sri Govind Krishna, learned counsel for the petitioner, submits that on a true and correct interpretation of the Government order dated August 11, 2000, the petitioner is entitled to retain the entertainment tax realised from the cinema goers. He submits that the pro forma of ticket showing the admission fee and the entertainment tax was approved by the Department. The petitioner realised the entertainment tax as per the approved pro forma on form B and as such, the Department cannot take a turn around and ask the petitioner to pay the entertainment tax realised by her. We were taken through the scheme dated August 11, 2000 as also the order dated September 10, 2001 granting exemption for a period of five years under section 11(2) of the Act and form B as provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers shall collect the entertainment tax and will be entitled for specified percentage from the entertainment tax so collected by way of grant for a period of three years up to maximum limit of 50 per cent of the entertainment tax realised by it. Now, we consider the G.O. dated August 11, 2000 involved in the writ petition. The said G.O. grants total exemption to a new cinema hall constructed in a place having less than one lac population on the basis of 1991 census to the extent of 100 per cent exemption from entertainment tax for a period of five years. In respect of the other picture halls, i.e., constructed in an area having more than one lac population, 100 per cent exemption has been granted for the first three years and 50 per cent for the next two years. It may be noted that in this G.O. there is no corresponding provision for payment of any grant by way of aid to such picture hall owners. There is a conscious departure in the G.O. dated August 11, 2000 from the earlier G.Os. in this regard. The Government took a conscious decision under the said G.O. dated August 11, 2000 to grant total or partial exemption from entertainment tax to such new picture halls instead of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment, other than an entertainment to which section 4 or section 4A or section 4B applies. Sections 4A and 4B relate to tax on video cinema and tax on video show in public service vehicle or hotels with which we are not concerned presently. Section 3 further provides that the entertainment tax shall be collected by the proprietor from the person making the payment for admission and paid to the Government in the manner prescribed. It follows that a proprietor of cinema has been authorised to collect entertainment tax from the cinema goers and to deposit the same to the Government in the prescribed manner. A proprietor of cinema is not entitled to pocket the entertainment tax and he has to deposit it with the State Government. In view of section 3 of the Act, when a proprietor of cinema collects tax by way of entertainment tax from the cinema goers, it would be entitled to collect such tax which is subject to levy and collection by the State. The authority in this behalf is implicit. Only for the aforesaid purpose, the statute provides for the mode and manner in which the tax is to be collected. This being so, there is no reason for appropriation of entertainment tax by the pro ..... 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