MOON LIGHT CINEMA, KATHUA AND ORS Vs. STATE OF J&K AND ORS

JUDGEMENT

(1.) The above noted five writ petitions came up for hearing on admission after notice to the respondents, who have filed their objections, were taken up together and heard at the same time. Since common question of law and fact are raised, hence they are all tied up and disposed of together.

(2.) The petitions are filed under Article 226 of the Constitution of India read with Section 103 of the J&K Constitution challenging the amendment in J&K Entertainment Tax (Cinematograph-Show) Amendment Act, 1983 published in Govt. Gazette dated August 19, 1983 and further praying that the SRO No. 111 of 1986 dated February 11, 1986 and SRO No. 526 of 1983 dated November 10, 1983 are declared as illegal and unconstitutional. A further prayer is made for the quashment of demand of show tax sought to be recovered under the provisions of SRO No. 526 dated November 10, 1983 demanding the same from the petitioners at the enhanced rates assessed from November 10, 1983 till January, 1986 All the petitioners allege that they are carrying on the business of public cinema shows in their respective Cinema Halls under a license obtained from the District Magistrate of their respective districts. Petitioners pay besides the license fee every year under the Cinematography Act, all other taxes which have been levied on them from time to time by the States and Union of India. They also pay income tax, property tax, and Entertainment Tax The J&K Entertainments Duty Act, 1959 was enforced in the State of J&K, which still continues according to which a tax on payment for admission to entertainment has already been levied on the Cinemas run by the petitioners, under the said Act no tax on any individual show is contemplated.

(3.) It is also contended that in the year 1962 another Act No XXIII of 1962 titled as J&K Entertainment Tax (Cinematograph Show) Act, 1962 (for short hereinafter called the 1962 Act) was promulgated by Respondent No. 1 the State with effect from August 15, 1962 vide SRO 178 of 1962. According to Section 3 of this Act, Tax is charged and paid to the Government on all public cinematograph exhibitions to which persons are admitted on payment of entertainment fax not exceeding Rs. 28.'- per show or such rates or rates as the Government may from time to time fix by notification in the Government Gazette. It also provides that tax levied under sub-section 1 shall be recoverable from the Proprietor. Later on Government of J&K vide Notification dated November 18, 1974 directed that the Entertainment Tax shall be levied, charged and paid to the Government on all cinematograph exhibitions at the rate of Rs. 10/- per show in accordance with which the petitioners were paying the said tax.