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TMI Blog2018 (11) TMI 1833X X X X Extracts X X X X X X X X Extracts X X X X ..... giving it a shape of a movie theatre/multiplex which includes providing, furnishing, sound proofing, acoustics, lighting etc. For the purpose of the Rules of 1982, a wider meaning to the word swami will have to be read and it cannot be confined to the actual owner who has no concern with the running or exhibition of a cinema hall or a multiplex. Neither is he meeting any obligations both under the license as well as other obligations including payment of entertainment tax etc. The word swami therefore, will be required to mean person who is actually at the helms of affairs in running of the cinema hall or multiplex. Meaning thereby that he is the entity who has made significant investment to make the space into a multiplex, is the licensee and is also making payments of entertainment tax etc. He meets all the requirements, obligations and duties imposed thereto in terms of the license and the agreement between him and the State under the Rules, 1982. The stand of the State that the Golden Rule of interpretation must be used to understand the word swami or 'malik' has to be rejected on the face of it since the same will make the Rule of 1982 to be unworkable an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f to be the owner. However, there is unanimity that persons who have set-up a new movie hall or a multiplex after 1st July, 1991 are required to be given subsidy by way of refund of entertainment tax, which are deposited by them. 4. The Rule of 1982 does not define the word swami . However, the word swami has been explained as part of Rule 5 and is used at various places in the Rule. Since the benefit of subsidy has to be extended to the swami or 'malik' either of the multiplex or a cinema hall, therefore the word has to be understood in the context and object for which the Rule was made. 5. Learned counsel representing the petitioner argues that there is a comprehensive legislation which has been in existence for a very long time even before the State of Chhattisgarh got created. The original legislation or the Act was known as Madhya Pradesh Entertainments duty and Advertisement Tax Act, 1936 (for short, 'the Act 1936') and has now been adopted by the State of Chhattisgarh. Here the enactment defines a 'proprietor' (swami) in Section 2 (f), which reads as under: 2(f)- 'proprietor' in relation to any entertainment, includes any per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. in case an inspection of accounts and documents and search of premises is carried out by the Excise Commissioner. Argument has been made that the word 'proprietor', therefore, should be read in the context of Sections 2(f), 3, 9(a) of 1936 Act to draw-out the essence as to why a broader kind of definition has been given to the word 'proprietor' in the Act of 1936. 9. To crystallise the argument made on behalf of learned counsel for the petitioner, the essence of the said legislation of 1936, which has a bearing to the subsidy scheme notified in the year 1982 is that the payment of entertainment tax and the liability thereof is the guiding principle, and not the actual physical ownership of a movie hall as also a multiplex now. 10. The intent of the enactment of 1936 therefore, is not the actual physical possession of a movie hall, but the person who is actually at the helms of affairs in running that movie hall which includes exhibition of movies and the liability to pay entertainment tax from the income earned from such exhibitions. Since payment of entertainment tax is an important component in the business of exhibition of cinema and it is also not ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affair, meaning thereby that there is a proprietor but independent of the proprietor there can be a person in-charge who is holder of licence may be as a Manager or Managers, who can be nominated under Rule 108 of 1972 Rules. Rule 108 also read as follows : 108. Licensee or his nominee to be present. Either the holder of the cinema licence or some person or some one of several persons whom the licensee has nominated as manager or managers and whose name or names have been entered as such in the licence, shall be present at the cinema to which the licence applies during the whole time for which such premises are open to the public. 14. A reading of Rule 108 of 1972 Rules also, according to the counsel for the petitioner, therefore, focuses on the issue that there is a distinction between an ownership of a cinema hall or a multiplex and an entity which actually runs the show and in whose name the license is issued or is permitted to be issued. Under the legislations therefore he becomes the person responsible for just about every obligation created under the statutes or license which includes payment of entertainment tax to the State authorities. 15. The licenses once i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a swami since they are the licensees and have been meeting all the obligations under the license and the enactments noticed earlier. The reason for them to approach the Court is to define the word swami and interpret it in such a manner that clarity is provided to the Rule so that the subsidy scheme in terms of 1982 Rules does not remain a hollow promise or remains illusive. 19. As has been the submission on behalf of learned counsel for the petitioner that in most of the cases the actual investment and in running of these movie halls or multiplexes, it is the licensee i.e. the PVR who are at the helms of affair and they have entered into agreement with the builder who has provided space for putting such movie halls or multiplexes and under that agreement whatever obligations are required to be met are met, therefore, for making the Rules workable the word 'swami' has to be understood in a constructive manner. 20. For the purpose of the Rules of 1982, a wider meaning to the word swami will have to be read and it cannot be confined to the actual owner who has no concern with the running or exhibition of a cinema hall or a multiplex. Neither is he meeting any obli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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