Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | entertainment tax cinema |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Tamil Nadu Entertainment Tax, 1939 (40 of 1939) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Tamil Nadu Entertainment Tax Act 1939: Section 5A(1) (As amended by Act 40 of 1989)--Constitutional validity of Cinema Theatres-Entertainment Tax-Levy on the basis of 'admission system' and 'composition system'- Classification of theatres for the purpose of levy- Theatres situated within the Municipal Corporations and Special Grade Municipalities governed by 'admission system'- Theatres situated in other local areas of State governed by 'composition system'-Theatres situated D within the radius of the five kilometers of Municipal Corporations and Special Grade Municipalities brought over from 'composition system' to 'admission system '- But temporary and open theatres exempted from 'admission system'- Held classification of theatres was reasonable and has nexus with the object of enactment-Held change-over to 'admission system' from 'composition system' is not an unreasonable restriction-Exemption to open and E temporary theatres held not discriminatory-Section 5A(1) held not violative of Articles 14 and 19(1)(g). Constitution of India, 1950: Articles 14 and 38. Expression 'Equality before law' and 'equal protection of laws'-Meaning of- Relevance of State's obligation to bring equality as contemplated by Article 38-Discussed. Doctrine of legitimate expectation- Legitimate expectation based on legislative practice cannot be invoked for invalidating a legislation. The Tamil Nadu Entertainment Tax Act, 1939 provides for levy of entertainment tax on admission to cinema theatres in the State of Tamil Nadu. Until 1978 the entertainment tax was levied on the basis of 'admission system' i.e. on the actual number of tickets sold. In 1978 the Act was ·amended and sections 5(A) and 5(8) were introduced. These sections introduced the 'composition system' of collection of entertainment tax under which tax was levied based upon the gross collection capacity of cinema theatres irrespective of the actual number of tickets sold. However, the newly introduced 'composition system' was not made applicable to the entire State. While the theatres situated within the Municipal Corporations of Madras, Madurai, Coimbatore and the Special grade municipalities continued to be governed by the original system of taxation i.e. 'admission system' the theatres situated in all other local areas of the y State were governed by the composition system. In 1989 the Act was further amended and Sub-section (1) of Section 5(A) of the Act was substituted. By this amendment, the percentage of entertainment tax vis-a-vis the rates of admission in force in corporation and special grade municipality areas was reduced from 53% to 40%. At the same time all the theatres situated within the radius of five kilometers from the peripheral limits of such areas (belt) which were hitherto governed by the composition system were brought over to the admission system. However, the temporary and open air theatres even though located in the belt of five kilometers were excluded from this switch-over. The appellants challenged the validity of section 5(A)(1) by filing various writ petitions which were dismissed by a Division Bench of the Madras High Court. In appeals to this Court, it was contended on behalf of the appellant (1) that the Amendment Act is arbitrary and violative of Article 14 inasmuch as (a) it classifies theatres situated in a local area into two categories subjecting one such category to a hostile treatment; (b) it equates the theatres situated in village panchayats and village townships and other lesser grade municipalities with the theatres in corporation areas and special grade municipalities area and that such a classification has no relation to the object of the enactment; (2) exemption of temporary and open theatres from the 'admission system' of taxation is discriminatory; (3) the impugned provisions are confiscatory in nature and they constitute an unreasonable restriction upon the petitioners' fundamental right to trade guaranteed by Article 19(1)(g); (4) The petitioners had come to entertain a legitimate expectation, based on legislative practice, that they would not be brought over to 'admission system' of taxation. |
Judge | Hon'ble Mr. Justice B.P. Jeevan Reddy |
Neutral Citation | 1992 INSC 73 |
Petitioner | Srinivasa Theatre And Ors. Etc. Etc. |
Respondent | Government Of Tamil Nadu And Ors. Etc. Etc. |
SCR | [1992] 2 S.C.R. 164 |
Judgement Date | 1992-03-12 |
Case Number | 2004 |
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