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TMI Blog1996 (12) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... on Television or Video scope in any place of entertainment or omnibus etc. at the rates specified therein. The latter Act came into force w.e.f. June 14, 1984. The Government made Rules by name, Gujarat Cinema (Regulation Exhibition by Video) Rules, 1984 (for short, the Rules ). The Rules have come into force on the same date. The respondents filed the writ petitions challenging the constitutionality of Section 6-A, Rules 13(1) and 19(ii) of the Rules. The High Court while upholding the constitutionality of the Act and the Rules held that the gross collection of the entertainment tax on the Video Recorder or Video Player on Television or Video scope is arbitrary and violative of Article 14. It also held that the Rules are ultra vires. Thus, these appeals by special leave. 3. In Venkateshwara Theater v. State of A.P. and Ors. AIR 1993 SC 1947, this Court considered the constitutionality of Sections 4, 4-A and 5 of the A.P. Entertainment Tax Act, 1939 providing for levy and collection of entertainment tax on the gross collection in Cinema theater. It was held in paragraph 16 that entertainment tax that would be collected over and above the average occupancy rate would constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the same class on the basis of the location of the theatre in each local area. We do not think that such a contention is well founded. 30. In relation to cinema theatres it can be said that the attendance in the various cinema theatres within a local area would not be uniform and would depend on factors which may vary from time to time. But this does not mean that cinema theatres in a particular category of local area will always be at a disadvantage so as to be prejudicially affected by a uniform rate as compared to cinema theatres having a better location in the same local area. It is, therefore, not possible to accept the contention that the impugned provisions are violative of the right to equality guaranteed under Article 14 of the Constitution on the basis that unequals are being treated equally. 5. Thus this Court had upheld the power of the Legislature to levy gross collections on the entertainment tax. Section 6-A reads as under: 6-A(1) There shall be levied and paid to the State Government a tax on an entertainment by video cassette recorder or video cassette player on television or Video scope calculated at the following rates, namely: (a) in any place of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly. (d) where a proprietor has been permitted to pay tax under Clause (c) he shall be liable to pay monthly at the following rates, namely: In the case of a place of entertainment within the local limits of a local area referred to - (1) in sub Clause (I) of Clause (a) of Sub-section (1) - (i) five rupees per seat per day where the proprietor has declared that he holds not more than three entertainments per day; and (ii) six rupees per seat per day where the proprietor has declared that he holds more than three entertainments per day; (2) in Sub-clause (II) of Clause (a) of Sub-section (1) (i) three rupees per seat per day where the proprietor has declared that he holds not more than three entertainments per day; and (ii) four rupees per seat per day where the proprietor has declared that he holds more than three entertainments per day, (e) A proprietor who has opted for payment of tax under Clause (a), may at any time but not before the expiry of a period of twelve months, by a notice in such form as may be prescribed, addressed to the prescribed officer, revoke his option from the commencement of any month following that in which the notice is giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e admission rates or while operating the omnibus during journey, the Video Recorder or Video Player has been exhibited for entertaining travelling passengers. Thus it is an admission to entertain the person on payment. It is then contended that the composition was not available to them at flat rate because there is no regular intake of the persons or of number of shows. Accordingly, the rule is arbitrary. We find no force in the contention, 7. It is seen that the Rule envisages imposition of the levy of the tax on the basis of the population of the place of exhibition, If it is a place where the population is one lakh and more @ Rs. 2 per seat and if the population is between one lakh and 50,000, @ Re. 1 per seat and in other places at Re. 0.75 per seat. It is for the licensee to specify to the authorities, how many persons are entertained. As far as the gross collections are concerned, it cannot be investigated to recall by a rule as to how many of them in each show are admitted. Sub-section 3(2) provides that for the purpose of levy of tax under this section, it shall be presumed that in the case of a place of entertainment falling under Clause (a) of Sub-section (1), a propri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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