- (1.) These appeals are directed against the judgment and order of a Decision Bench of the Hight Court of Kerala reversing the judgment of a learned single judge allowing the writ petition filed by the appellants.
(2.) For the purpose of appreciating what is argued, Section 2(7) of the Local Authorities Entertainment Tax Act and Section 3 thereof, as they read at the relevant time, may be quoted, thus: 2(7) 'Payment for admission' includes - (a) any payment made by a person who, having been admitted to one part of place of entertainment, is subsequently admitted to another part thereof, for admission to which a payment involving a tax or a higher rate of tax is required; (b) any payment for seats or other accommodation in a place of entertainment; and (c) any payment for any purpose whatsoever connected with an entertainment which a person is required to make as a condition of attending or continuing to attend the entertainment in addition to the payment, if any, for admission to the entertainment. And Section 3 provides:
(3.) General provisions regarding the levy of the tax and the rate of tax:- Any local authority may levy a tax (hereinafter referred to as the entertainment tax) at a rate not less than 10% and not more than 25% on each payment for admission to any entertainment." 3. Section 3 empowers the local authorities to levy a tax at a rate not less than 10% and not more than 25%. The rate was 20% until, by notification issued pursuant to a resolution of the Municipal Council, Tellicherry dated 31st May, 1969, it was enhanced to 25% with effect from 15th July, 1969.;