SHIRIN ESTATES PVT LTD Vs. STATE OF GUJARAT
LAWS(GJH)-2008-8-77
HIGH COURT OF GUJARAT
Decided on August 14,2008

SHIRIN ESTATES PVT. LTD Appellant
VERSUS
STATE OF GUJARAT Respondents

JUDGEMENT

- (1.) THIS petition has been filed primarily on the ground that the petitioner is being discriminated against by respondent State Government by virtue of circular dated 20. 2. 2004 (Annexure A) and by virtue of New Package Scheme of Incentives For Tourism Projects 1995-2000 (Annexure C ).
(2.) THE petitioner, a private limited company has constructed a cinema theatre known as Priya Cinema at Sevasi, Vadodara after investing Rs. 3. 5 crores. That the petitioner is liable to pay entertainment tax at the prescribed Rules as provided in the Gujarat Entertainment Tax Act, 1977 (the Act) and the Rules framed thereunder.
(3.) THE learned advocate for the petitioner has assailed in the first instance the Scheme by submitting that an inequality has resulted between theatres which are having single screen and theatres having multiple screens by virtue of the Scheme whereunder such multiplexes have been granted exemption from entertainment tax apart from other taxes while cinema houses like the petitioner have been excluded from such benefits. That the Scheme has been floated dehors the provisions of the Act as there is no provision in the Act to grant such exemption to multiplex cinemas. The second contention was that the impugned circular dated 20. 2. 2004 is contrary to the provisions of the Act and the Rules thereunder when the benefit of non levy of entertainment tax on the service charge component collected by the cinema owner not being granted the said concessional benefit merely because there is delay in payment of entertainment tax which has already been taken care of by providing for levy of interest and penalty under the provisions of the Act. The third contention was to the effect that the rate of interest provided under the Act for belated payment of tax is exorbitant and though subsequently by an amendment the rate of interest has been reduced from 24% to 18%, the petitioner is not being granted the said benefit and is required to pay interest at the rate of 24% only.;


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