Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Andhra Pradesh Entertainment Tax Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Andhra Pradesh Entertainment Tax Act, 1939:S.5 - Tax payable by cinema owner dependant on gradation of municipality - Upgradation of municipality - Assessing officer ignorant of upgradation - Mistake thereby in computation of tax payable - Held: Mistake can be rectified - Question as to quantum of difference may be determined by appropriate authority after giving opportunity of hearing to assessee - However, assessee not liable to pay any penalty and interest on the said amount.Respondent owner of a cinema theatre was liable to payment of entertainment tax. S.5 of Andhra Pradesh Entertainment Tax Act, provided for computation of tax on the basis of an option to be exercised by the owner of the theatre subject to the conditions as may be prescribed therefor. The scheme for exercise of such an option is that; (i) a proprietor has to file an application in the prescribed form before the prescribed authority; (ii) the authority would pass an order upon giving an opportunity of hearing to the owner of the theatre for correct determination of the amount and the nature of security to be furnished by the proprietor for proper payment of tax and the time within which such security to be furnished; (iii) once such security is furnished the Entertainment Tax Officer is required to grant a permit in the prescribed form, namely, Form IV wherafter, the proprietor of the cinema theatre is to pay tax in the manner indicated therein.The cinema theatre in question is situated within Serilingampally Municipality. In terms of Notification dated 18.5.2001, the Municipality was upgraded to Grade II from Grade III. The respondent filed application in terms of the scheme prior to 18.5.2001.Form IV was issued to the respondent on 25.5.2001.During assessment of tax proceedings in terms of the option exercised by the respondent, the Entertainment Tax Officer was not aware of the factum of upgradation of the Municipality in terms of the said Notification dated 18.5.2001. The mistake was pointed out only by the Office of the Accountant General. A show cause notice in terms of s.5(6) of the Act was, therefore, issued on the respondent on or about 24.6.2005.The question for consideration before this Court is whether in terms of s.5(6), an order of varying the quantum of tax could be passed only during the currency of period for which such tax is to be paid. |
Judge | Hon'ble Mr. Justice Navin Sinha |
Neutral Citation | 2007 INSC 972 |
Petitioner | Entertainment Tax Officer, Madhapur Circle, Hyderabad |
Respondent | M/s. Hi Tech Theatre, Madhapur, Hyderabad |
SCR | [2007] 10 S.C.R. 605 |
Judgement Date | 2007-09-24 |
Case Number | 4491 |
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