9911796707
TMI Blog1990 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner impugned the imposition of show tax on the establishment using video for exhibition of cinema films. The petitioner is a licence-holder for exhibition of films on video under the Punjab Cinema Regulations Act/Rules, 1952. The Punjab State levied an entertainment duty under the Punjab Entertainment Duty Amendment Act, 1986. The respondents in exercise of powers under section 242(1)(a) of the Punjab Municipal Act, 1911 (hereinafter called "the Act"), imposed the show tax on the establishments which were using video for exhibition of cinema films on commercial basis. The notification has been challenged on the ground that the petitioner has established the video parlour on the implied assurance by the State that, on deposit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legated legislative powers. It was claimed that the Municipal Committee was within its rights to impose the tax in terms of sections 61 and 62 of the Act and it has been so imposed. Since the petitioner is running the video parlour, it is liable to pay the show tax. We have gone through the writ petition as well as the notification along with the Division Bench judgment cited by learned counsel for the petitioner. Nothing has been pointed out from which it can be inferred that the respondent-State or the Municipal Committee is estopped from imposing the tax. Vide notification dated April 1, 1986, the State of Punjab levied the entertainment duty by adding the amended provisions of the Punjab Entertainment Duty Act, 1955. Under the said no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part cinema exists. thereof. (ii) In places where permanent Rs. 1,500 per calendar month or cinema exists and population is part thereof. below one lakh. (iii) In places where permanent Rs. 2,000 per calendar month or cinema exists and the population is part thereof. one lakh and above. Charging of the tax does not mean waiving of the licence which has to be obtained from District Magistrates under the Punjab Cinema (Regulation) Act, 1952. This notification shall come into force from the date of publication in the Official Gazette." We have read the notification with the help of counsel. From a reading of the notification, nothing is discernible with respect to the persons who are liable to pay the show tax, though the impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taxed. We do not find any force in the contention of learned counsel for the petitioner that there are no provisions for the assessment of the tax or the absence of machinery for assessment or the adjudication of disputes with respect to the amount of tax which may arise between the assessee and the Municipal Committee relating to the show tax. A reference can be made to the Municipal Account Code, 1930, framed under section 240 of the Punjab Municipal Act, 1911. Chapter VII provides the procedure and the appointment of the persons with respect to the taxes referred to above. The provision runs as under : "VII. 1(i)(a) In every corporation, in which any tax other than octroi is imposed, the Government may appoint a tax superintendent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct from August 15, 1976. Later, another notification dated July 9, 1976 under sub-section (1) of section 71 of the Act was issued by the Governor of the Punjab by which that tax was reduced from 10 paise to 5 paise per sold ticket. It is admitted by counsel for the respondents that no bye-laws have been framed regarding the entertainment tax. The notification provides regarding imposition of tax at the rate of 10 paise per sold ticket which was later reduced to 5 paise. It prescribes only the rate of assessment and not the system.. . ." We are in full agreement with the observations made by the Division Bench and nothing can be gainfully added to it. So far as compliance with the provisions of sections 61 and 62 is concerned, the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n all respects with those of the Municipal Act, 1911, and the notifications issued thereunder. Keeping in view the peculiar facts and circumstances of the case in hand and particularly the fact that local bodies do not run on charity as also the fact that the owners of the parlours have been collecting the tax from the public going for the entertainment by sale of tickets and the same amount has to be used for the betterment of the public in general and the petitioner cannot be permitted to enrich itself from the amount so collected from the public under the garb of the statute which, for the reasons recorded above, is found to be invalid, the Municipal Committee shall not be liable to refund the tax already recovered. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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