RAMESH KUMAR GOSWAMI Vs. STATE OF M.P.

JUDGEMENT

(1.) PETITIONER in the instant writ petition prays for relief to strike down the demand raised by Janpad Panchayat for realization of entertainment/show tax as per demand notices P/3 and P/4.

(2.) PETITIONER submits that the petitioner is a citizen of India and resides at Khurai, district Sagar. He is the sole proprietor of Hemant Talkies which exhibits films at Khurai district Sagar within the limits of Municipal Council, Khurai. Petitioner challenges the levy as also the competence of respondent No. 3 to impose and recover entertainment tax -show tax from the petitioner. Petitioner submits that in exercise of the powers conferred by M.P. Panchayat Act section 103 (Act 7 of 1962) the State Government divided the Districts into Blocks vide notification P/1 dated 7 -7 -1965 published in the Madhya Pradesh Rajpatra dated 31 July 1965, in which Patwari Halka No. 50, new number is 17, has been expressly excluded from the Blocks mentioned in the notification. Thus, the petitioner submits that Patwari Circle No. 50 does not fall within the jurisdiction of Janpad Sabha or Panchayat. The Municipal Council, Khurai recovers show tax from the petitioner, one of such receipt is P/2, granted by the Municipal Council, Khurai. Under sub -section (2) of section 4 of the M.P. Panchayat Act, 1981 the State Government is empowered to divide districts into Blocks., In the notification, Patwari Circle No. 50 has been excluded from the operation of the M.P. Panchayat Act, 1962. There is no notification to the contrary so far issued under the Panchayat Adhiniyam. The demand raised of entertainment/show tax as per P/3 of a sum of Rs. 4137.30 and Rs. 3204.58 as per P/4 is illegal. Petitioner filed objection to the demand notice P/5. Chief Executive Officer rejected the objection as per order P/7 dated 8 -5 -1990. Thereafter Naib Tehsildar, respondent No. 5 issued demand notice dated 6 -7 -1990 for Rs. 2100/ - for the period November 1989 to May 1990. Petitioner submits that this Court in M.P. No. 26/1997 (B.K. Marfatia vs. State of M.P.) and in M.P. No. 1269/1984 (Kum Kum Talkies Panna and another vs. State of M.P.) held that Janpad Panchayat cannot recover show tax outside its territorial limits.

(3.) A rejoinder has been filed by the petitioner pointing out that the village has been constituted under section 3 and village Khurai does not include Patwari Circle No. 17. Decision of this Court in Kum Kum Talkies P/13 has been filed and also of Shree Mohan Talkies P/14 - M.P. No. 156/94 (Shree Mohan Talkies Katni and ors. vs. State of M.P. and ors.) decided on 3rd April, 1997.