- (1.) These appeals by special leave arise from the common judgment of the Division Bench of the Karnataka High Court, made on September 13, 1985 in Writ Appeal Nos. 1640-46/85.
(2.) The admitted position is that the Legislature of Karnataka introduced Section 6-B in the Karnataka Entertainments Tax Act, 1958 by Amendment Act, 1966 (Karnataka Act 14 of 1966) with effect from May 16, 1966 which reads as under: "6-B Payment for admission, etc., escaping assessment - (1) where, for any reasons, (i) any complimentary ticket or any payment for admission to any entertainment has escaped assessment to tax under Section 3 or Section 3-A, or (ii) any cinematograph show has escaped assessment to tax under Section 4 or 4-A, or (iii) such ticket, payment or show has been assessed at a rate lower than the rate at which it is assessable under Section 3 or Section 3-A or Section 4 or Section 4-A. The authority prescribed under sub-section (1) of Section 6-A may, subject to the provisions of sub-section (2) and at any time within such period as may be prescribed, assess or re-assess, to the best of its judgment, the rate due on such ticket, payment or show under Section 3 or Section 3-A or Section 4 or Section 4-A as the case may be, after service of notice on the proprietor and after making such enquiry, as it may consider necessary."
(3.) Reassessment of escaped turnover was sought to be made by operation of Notification No. FD. 194 CEX-76, dated 30-11-1976 amending and framing Rule 29-F of the Rules made under the Act prescribing the period of limitation of five years. It reads as under: "29-F. The time within which the power under Section 6-B is exercisable shall be five years from the close of the period to which the assessment in question relates." ;