V.P.TYAGI, J. - (1.) THIS writ petition, has been filed by a Trust known as His Highness the Maharaja of Jaipur Museum Trust, City Palace, Jaipur, (hereinafter called the Trust) under Article 226 of the Constitution to challenge the levy of entertainment tax on the proceeds received by the Trust for allowing admission of the visitors to the museum on payment of certain fees prescribed by the Trust.
(2.) HIS Highness the Maharaja of Jaipur by a registered deed created a Trust on the 16th April, 1959, and founded a museum in a portion of the city palace, Jaipur. It was a public charitable Trust. His Highness had a vast collection of various articles of historical, scientific, literary and archaeological importance which came in his possession from several generations. The Maharaia relinquished all his rights., title and interest in those articles and handed over them to be placed in a museum for which the aforesaid Trust was created by him. According to the petitioner, this museum was founded for the benefit of the public and the visitors who visited the historic city of Jaipur. It is also contended that research scholars, students of history and persons interested in archaeology, architecture, science or arts derive benefit out of this museum which provides an opportunity for further studies and to augment their knowledge in the above subjects. The entrance fee that is charged from the visitors to the museum ranges from Re. 1/ - to Rs. 4/ - per head and the collection made from the entrance fee is utilised for the improvement of the museum and other charitable purposes. It is said that His Highness donated a further amount of rupees one lac for the upkeep and maintenance of the said museum. On the 1st December, 1961, the Entertainment Tax Officer -cum -Sales Tax Officer 'B' Circle, Jaipur City, issued a notice to the petitioner to pay entertainment tax leviable on the admission tickets issued by the Trust and demanded year -wise account of the sale of the tickets issued till 15th December, 1961. The petitioner by filing a reply to the said notice urged that the sale proceeds of the tickets sold to the visitors of the museum cannot be subjected to entertainment tax under the provisions of the Rajasthan Entertainments Tax Act, 1956 (hereinafter called the Act). This objection, it so appears, was examined by the Department and it is said that the Commercial Taxes Officer received instructions from the Commissioner, Excise and Taxation Rajasthan, that since museums are educational and historical institutions, they cannot be termed as places of entertainment, and, therefore, no entertainment tax can be charged. This instruction of the Commissioner, it appears, was accepted by the then Sales Tax Officer who had issued the notice to the petitioner, and, therefore, he did not proceed to assess the petitioner for a period of over seven years. The respondent No. 2, after the lapse of a period of seven years again issued a notice on the 28th October, 1967, in the same terms in which the previous notice dated the 1st December, 1961, was issued by the Department. This notice has been placed on record and is marked as An -nexure F. The petitioner by his reply dated the 6th November, 1967, submitted to the respondent No. 2 that this matter stands decided by the instruction issued by the Commissioner on the 1st January, 1962. A copy of the letter of the Commissioner was also sent along with the reply; but it so appears that the present Taxation Officer was not convinced by the departmental instructions issued by the Commissioner and he proceeded to assess the petitioner under the provisions of the Act. On the 12th January, 1968, the petitioner again submitted a written representation to respondent No. 2 saying that the museum was a registered trust of which educationalists like the Vice -Chancellor and other eminent persons were the trustees. The petitioner also drew the attention of the Taxation Officer that item No. 12 in List II of the Seventh Schedule of the Constitution indicates that museum has been considered by the Constitution makers in the categories of libraries, ancient and historical monuments etc. and not in categories of dramatic performances, cinemas, sports, entertainments and amusements as mentioned in Item No. 33 of the said List. According to the petitioner, the scope of the Act is to levy tax only on theatres, cinemas and other places of entertainment and not to tax the proceeds received bv the museum which is spent for charitable and educational purposes. In spite of the notices received, no account was submitted by the petitioner to the assessing authority for completing the assessment, and, therefore, the assessing authority proceeded to assess the petitioner without any material before it and passed an order on the 3rd October, 1968, which is placed on record as Annexure L. From this order it appears that the following findings were given by the assessing authority, namely, the Commercial Taxts Officer 'B' Circle, Jaipur: (1) The museum comes within the definition of entertainments as given in the Act. (2) Tax is leviable on the admission fee charged for admissions. (3) The Director has failed to comply with the provisions of Section 6(1) which lays down that no person shall be admitted to an entertainment except with a ticket stamped with adhesive stamps denoting that proper entertainment tax has been paid. (4) The offence under Section 6 (1) is being committed daily. According to report of the Commercial Taxes Inspector dated the 20th September, 1968, the number of persons admitted on 17 -7 -68, 18 -7 -68, 19 -7 -68 and 20 -7 -68 was as under: Date No. ofpersons admitted Admissionfee 17 -7 -68 89 319.00 18 -7 -68 63 216.00 19 -7 -68 96 316.00 20 -7 -68 75 266.00 Since the default of the petitioner was found punishable under Section 10 (3) (a) of the Act and as the petitioner was committing the default in spite of the instructions issued by the assessing authority every day, a penalty was imposed by the respondent No. 2 on the petitioner for the contravention of Section 6 (1) of the Act as follows: Date Amount of penalty 17 -7 -68 Rs. 200/ - 18 -7 -68 Rs. 200/ - 19 -7 -68 Rs. 200/ - 20 -7 -68 Rs. 200/ -
(3.) THE petitioner has challenged the aforesaid order of imposing penalty by filing this writ petition inter alia on the ground that the museum does not fall within the definition of 'entertainment' as given in S. 3 (5) of the Act, and, therefore, no entertainment tax is leviable on the receipts obtained by the petitioner after selling the tickets from the visitors entering the museum. Another notice Ex. M for a period of seven days commencing from the 1st August, 1968, to 7th August, 1968, was given by the respondent No. 2 which has also been challenged by the writ application on similar grounds.;