M/S. VEENA THEATRE PRIVATE LIMITED AND ANOTHER Vs. THE STATE OF BIHAR AND ANOTHER

JUDGEMENT

(1.) These two applications have been heard together and will be disposed of by this common judgment. For the sake of clarity I shall refer to the facts of C.W.J.C No. 1895 of 1986. The decision on questions of law in this case will determine the result of C.W.J.C. No. 5803 of 1986. The two applications are directed against levy of advertisement tax by State of Bihar. The petitioners are Cinema Exhibitors duly licensed under the Bihar Cinema Regulations Act. The second petitioners in both the applications are the Managing Directors of the licensees. In 1981 the State enacted Bihar Finance Act embracing the law on the subject of levy of sales tax, entertainment, advertisement tax etc. etc. Part I thereof related to law of sales (sic) in Bihar, Part II thereof dealt with the advertisement tax traversing Ss. 62 to 81. Part II of the aforesaid Finance Act, 1981 described what was included within the expression 'advertisement'. The charging Sec. was enshrined in Sec. 63 originally read as follows:

(2.) In C.W.J.C. No. 5803 of 1986 no action has been taken by Assistant Commissioner of Commercial Taxes, Purnia Circle. Purnia except issuing notice to the petitioners to show cause why legal action be not taken against them for not complying with the order dated 1.7.1986 by which they had been directed to produce papers relating to advertisement. By Annexure -2 dated 12.9.1986 of this application the petitioners were asked to deposit the advertisement tax in the treasury by chalan. The petitioners of this application have contended that no advertisement tax is payable under the law on advertisement by slides, shorts and trailers in a Cinema House. The sum and substance of the stand of the petitioners of both the applications is that there is no liability to pay advertisement tax.

(3.) The vires of any provision of the Bihar Finance Act has not been challenged. All that has been contended by learned Counsel for the petitioners is that no tax on advertisement which is not a sky sign is leviable. It has not been disputed that sky sign advertisement fell within the mischief of the provisions regarding levy of tax on advertisement.