RAJES KUMAR, J. - (1.) HEARD Sri Amol Ranjan, learned Counsel for the peti­tioner and Sri B.K. Pandey, learned Standing Counsel.
(2.) BY means of present petition, the petitioner is challenging the demand of the penal interest under section 34-A of the U.P. Entertainments and Betting Tax Act, 1979 (hereinafter referred to as the "Act"). The brief facts of the case are that the petitioner had established Cinema Hall and started exhibition of Cinema from 16.1.2004. The petitioner had applied for the licence under the Act which was granted. The petitioner had also applied for the exemption from the tax under the Scheme of the Government. The District Magistrate, Aligarh vide order dated 10.2.2004 granted exemption for the period of five years from the date of the order, the order of the District Magistrate is Annexure-5 to the writ petition.
(3.) IT appears that though the petitioner had exhibited Cinema but had not paid the tax for the period of 16.1.2004 to 9.2.2004 as required under section 8 read with Rule 24 of the U.P. Entertainments and Betting Tax Rules, 1981 (hereinafter referred to as the "Rule"). It also appears that for a long period, no demand had been raised for the aforesaid period. Thereafter, the respondent No. 2, on 4.8.2006 issued the notice, demanded a sum of Rs. 7,74,666.57 P. plus interest thereon at the rate of 2% per month from 16.1.2004 to 9.2.2004. It appears that the petitioner has deposited the principal amount of the tax de­manded as per notice, however, disputing the demand of the interest.;