Raghuvir, J. - (1.) In the State of Andhra Pradesh as in any other State in India, cinema theatres can be classified in numerous ways. They can be classified like - air-conditioned, air-cooled, or ordinary. They can be classified like permanent, semi-permanent, touring or temporary. Theatres can be classified from the standpoint of population of towns-whether they are in a town of 10,000, 15,000, or 25,000 of population or more. Theatres can be identified from the standpoint of local authorities-whether they are in Municipal Corporations, Selection Grade Municipalities, Special Grade Municipalities, First Grade Municipalities, Second Grade Municipalities, Third Grade Municipalities, etc.
(2.) Theatres in the recent past are classified from the number of seats or shows they exhibit. One classification or other is resorted to by the State for optimizing the collection of entertainment taxes. Which classification is to be adopted depends on what basis is adopted by the Government. Some classifications adopted by the State in the calendar years 1984 and 1985 are assailed in the above group of cases.
(3.) To state the facts : The State Government at first revised on 29/12/1983, the entry fee in theatres in the or der in G. O. 615. The rates were increased to Rs. 7 (sic) and Rs. 0.60 from the existing rates. On the same day, Ordinance No. 31 of 1983 was promulgated. The existing structure of levy of entertainment tax with reference to population of towns was abandoned. While replacing the Ordinance by Act 24 of 1984, the Legislature introduced the concept of "gross collection capacity" for levy of the tax as explained in section 4 of the Act. What is introduced cumulatively, for short, is stated to be tax on shows exhibited. The structure that was abandoned is referred to as tax on sale of tickets. We adopt the two expressions wherever it is necessary to refer in the course of this order.;