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TMI Blog2019 (7) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- Though a part of the security deposit has been received by way of a cheque drawn in favour of the second respondent, in the light of the submissions made on instructions by Standing Counsel that the cheques have since been encashed and the monies have been deposited to Municipal Fund of cash, which is a permitted mode of deposit, this Court finds no infirmity or illegality in the mode of deposit also. Petition dismissed. - W.P.Nos.20786, 20789, 20792, 20794, 20795, 20798 & 20799 of 2019 and WMP Nos.19970, 19973, 19978, 19982, 19984, 19985 & 19987 of 2019 - - - Dated:- 16-7-2019 - Mr. Justice M. Sundar For the Petitioner : Mr.B.Kumar, Senior Counsel for Mr.S.Ramachandran For the Respondents : Mr.S.Sathish, Standing Counsel for Salem Municipal Corporation. COMMON ORDER This common order will govern these seven writ petitions. In other words, this is a common order which will dispose of these seven writ petitions. 2. Mr.B.Kumar, learned Senior Counsel instructed by Mr.S.Ramachandran, learned counsel on record for writ petitioner in all the seven writ petitions is before this Court. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority concerned has made by-laws which go by the caption 'The Tamil Nadu Local Authorities Entertainments Tax By-Laws, 2017' (hereinafter 'said by-laws') 8. This takes us back to the central theme/core issue which pertains to making of security deposit by the writ petitioners, in view of tax which they are liable to pay under said Act. 9. With regard to tax payable by writ petitioners under said Act, it is submitted before this Court without any disputation or disagreement, that all seven writ petitioners qualify as permanent theatres (as opposed to temporary (touring) theatres and semi-permanent theatres), that all the seven writ petitioners are liable to pay tax under said Act which was at the rate of 30% of what can be described in common parlance as tickets sold in a week and that this 30% was scaled down and brought on and with effect from 16.10.2017. 10. To be noted, this 30% is set out in Section 3(2)(a)(i)(A) of said Act. That it was brought down on and with effect from 16.10.2017 is not in dispute. To be noted, it has been brought down to 8% for new Tamil films, 15% for new films mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Entertainments Tax Officer; (iii) Post Office Savings Bank Deposits; (iv) Deposits made with any Nationalized or Scheduled Bank operating in the Municipal Limits or the Tamil Nadu State Cooperative Bank and Central Co-operative Banks approved by the Registrar of Co-operative Societies for this purpose; (v)Loan bonds or debentures issued by quasi-Government organizations or other institutions, repayment of which is guaranteed by the Government, other than prize bonds and National Defence Certificates, duly pledged in the name of the Entertainments Tax Officer. Where security is furnished in the form of a deposit with any of the Banks specified in item (iv), the deposit shall be made in the name of the The Entertainments Tax Officer Account ..... (Proprietor of the theatre)' and the proprietor shall at the time of making the deposit give an application/letter to the Bank to the effect that the deposit in question had been offered to the Entertainment Tax Officer as a security for the due performance of his obligations under the Tamil Nadu Local Authorities Entertainments Tax Act, 2017 (Tamil Nadu Act 20 of 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the contrary, what emerges clearly from the affidavits filed in support of the instant seven writ petitions as well as the submission made in the hearing today is that writ petitioners have subjected themselves to the demand of security deposit, more particularly demand of security deposit as computed under by-law 6 of said by-laws and they have also paid a part of it. Now that the impugned demand notices captioned have been issued, calling upon writ petitioners to pay security deposit, instant writ petitions have been filed. To be noted, in the impugned demand notices, it has been mentioned that stringent action will be initiated against cinema theatres which do not make the security deposit and that such stringent action will be initiated by Salem City Municipal Corporation. 19. In this regard, learned Standing Counsel for Salem City Municipal corporation, on instructions, submitted that prior to the impugned demand notices, writ petitioners were put on notice inter alia vide the aforesaid communications/circulars, meetings were convened giving sufficient advance notices inter alia to writ petitioners, noticees attended such meetings, writ petitioners were g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 30% to various rates which has been set out supra and alluded to elsewhere supra in this order, it is not a uniform scaling down to 8% as contended, but the scaling down is based on the type of film which is on show. Effectively there are six rates varying between 7% and 20 %, t he details of which have been alluded to supra. However for the sake of clarity and ease of reference, this Court extracts the relevant portion as placed before this Court and the same reads as follows: 'Where as, the Government in Government Order dt.16.10.2017 has further revised the levy of Entertainments tax on exhibition of cinematograph in theatres whether permanent or semi-permanent by way of remission w.e.f. 16.10.2017 at the following rates; (i) at the rate 8% for new Tamil films, 15% for new films made in other Indian languages, and 20% for new films made in English other foreign languages, (ii) at the rate of 7% for old Tamil film, 10% for old films made in other Indian languages, and 14% for old films made in English other foreign language.' 23. Therefore, the maximum tax payable is 20%. In this regard, it is ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eft high and dry. Therefore, this Court finds no illegality in the second respondent adopting 1 half times of tax payable i.e., 15% in this scenario for arriving at the security deposit that has been demanded. 28. Moreover, as mentioned supra, this quantum has been arrived at through a process of consultation and there are several communications which have been referred to supra. There have been no objections from the writ petitioners in this regard earlier. This Court is informed that this is the first time that writ petitioners have assailed the impugned demand notices. In other words, the mode of computation, the methodology for calculation as well as the determinants/parameters for such computation within the four corners of by-law 6 of said by-laws was never assailed or challenged though meetings were convened and writ petitioners were informed. Furthermore, writ petitioner has submitted themselves to such methodology as well as the parameters/determinants and have also paid a part of the demand. To be noted, as mentioned supra, out of a total demand of ₹ 31.40 lakhs qua the seven writ petitioners, a sum of ₹ 11.40 lakhs has already been paid. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 019 from the second respondent has been placed before this Court. A perusal of the same reveals that writ petitioners have referred to some Government Orders, but have not given details of the Government Orders in terms of date, number etc., 34. However, now that this submissions made today before this Court are without any disputation or disagreement, it may not be necessary to advert to this aspect of the matter any further. 35. Owing to the narrative thus far, this Court finds no grounds to interfere with the impugned demand notices, the writ petitions fail and the same are dismissed. Consequently, connected miscellaneous petitions are dismissed. There shall be no order as to costs. 36. At this juncture, after the order has been passed, learned Senior Counsel for writ petitioners, on instructions, requests that some time may be granted to the writ petitioners to make the aforesaid balance security deposit of ₹ 20 lakhs in accordance with this order. Considering that writ petitioners have already made nearly 1/3rd of the security deposit demanded (₹ 11.40 lakhs from and out of a total security deposit of ₹ 31.40 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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