Dinesh Maheshwari, J. - (1.) BY way of this writ petition, the petitioner said to be a partnership firm and owning a place of entertainment viz., Cinema Hall, known as K.V. Palace at Raisinghnagar, has questioned the provisions as contained in Sub -Section (1A) of Section 4 and Sub -Section (3) of Section 6 of the Rajasthan Entertainments and Advertisements Tax Act, 1957 ('the Act'/'the Act of 1957'). The petitioner has also questioned the orders passed against it by the competent authority under Sub -Section (3) of Section 6 of the Act as regards the composition of tax payable. In brief, the relevant background aspects could be noticed in the following: The Act of 1957 is to provide for levy by the State Government of a tax in respect of admission to theatres, cinemas and other places of public entertainments etc.; and a tax in respect of certain forms of advertisements; and for ancillary matters. 'Entertainment tax' means the tax levied and charged under Section 4 of the Act. Sub -Section (1A) was inserted in Section 4 of the Act by the Amendment Act No. 11 of 2000 with effect from 10.05.2000. After such insertion, the provisions of Sub -Section (1) and Sub -Section (1A) of Section 4 of the Act read as under (while omitting other sub -Sections for being not directly relevant): - 4. Levy of tax on payment for admission. -(1) There shall be levied, charged and paid to the State Government on all payments for admission to an entertainment, a tax at such rate not exceeding 100 percent of the payment for admission, as may be notified by the State Government, from time to time, subject to a minimum of five paise in any one case, the amount of tax wherever necessary shall be rounded off to the nearest multiple of five paise, fractions of two and half paise or more being counted as five paise, and less than two and half paise being ignored. (1A) The entertainment tax as payable under Sub -Section (1) shall generally not be less than the amount calculated and arrived at on such percentage of occupancy of the authorized sitting capacity as may be notified by the State Government from time to time. .......................
(2.) SECTION 5 of the Act of 1957 provides the manner of payment of tax and reads as under: - 5. Manner of payment of tax. -(1) Subject to other provisions of this Act, the entertainment tax shall be levied in respect of each person admitted on payment and shall be calculated and paid on the number of admission. (2) The entertainments tax shall be due and recoverable from the proprietor. (3) The proprietor shall submit such returns relating to payments for admission to an entertainment to such authority, in such manner and within such period as may be prescribed. Section 6 of the Act of 1957 regulates the entry of the persons to an entertainment while making provisions for admission through tickets. In Sub -Section (3) thereof, special provisions have been made, notwithstanding anything contained in Sub -Section (1) and (2), that the State Government may allow a proprietor of any entertainment to compound the tax payable; or to pay the amount of tax by a consolidated payment of the gross sum received, or in accordance with the returns of the payment for admission etc. The provisions as contained in Section 6 read as under: - 6. Admission to entertainments. -(1) Save as otherwise provided by the Act, no person other than a person who has to perform some duty in connection with an entertainment imposed upon him by any law or otherwise shall be admitted for payment to an entertainment where the payment is subject to the entertainments tax, except with a ticket stamped with an impressed, embossed, engraved or adhesive stamp (not before used) issued by the State Government for the purpose of revenue and denoting that the proper entertainment tax has been paid. (2) No proprietor shall admit any person to an entertainment without payment for admission thereof or at concessional rates except in accordance with the prescribed conditions. (3) Notwithstanding anything contained in subsections (1) and (2), the State Government may, on the application of the proprietor of any entertainment in respect of which the entertainment tax is payable under this Act, allow such proprietor, on such conditions, as may be prescribed, - (a) to compound the tax payable in respect of such entertainment for a fixed sum, or (b) to pay the amount of the tax due (i) by a consolidated payment of such percentage of the gross sum received by the proprietor or on account of payments for admission to the entertainment and on account of the tax, as the State Government may fix, or (ii) in accordance with returns of the payments for admission to the entertainment and on account of the tax, or (iii) in accordance with the results recorded by any mechanical contrivance which automatically registers the number of persons admitted. (4) The restrictions imposed by sub -Sections (1) and (2) shall not apply to any entertainment in respect of which the tax due is payable in accordance with the provisions of sub -Section (3),
(3.) IN exercise of the powers under Sub -Section (3) of Section 6 of the Act, the State Government earlier prescribed a Scheme that was in force upto 21.05.1999 and then, another Scheme was framed on 22.05.1999 superseding the earlier one. Thereunder, the State Government delegated the powers under Section 6(3) in favour of the Dy. Commissioner (Administration), Commercial Taxes for passing the orders for compounding in appropriate cases.;