Entertainments tax cannot be demanded without any actual show or admission, even under a weekly payment arrangement.

Where no entertainment was actually exhibited and no person was admitted for entertainment, entertainments tax under the Tamil Nadu Entertainments Tax Act could not be levied for those weeks. The Court examined the statutory requirement of admission to an entertainment under section 4 and the weekly tax arrangement under section 5-B, and held that a weekly payment basis did not justify a demand in the absence of any shows. The demand for the two weeks was therefore without legal basis, was quashed, and the amount collected for those weeks was directed to be refunded.

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Issues: Whether entertainments tax was payable for the weeks in which the theatre did not conduct any shows and whether the demand raised for those weeks was lawful.

Analysis: Liability under the entertainments tax scheme was examined with reference to the requirement of admission to an entertainment under section 4 and the weekly tax arrangement under section 5-B of the Tamil Nadu Entertainments Tax Act, 1939. On the facts found, no shows were conducted during the two weeks in question and there was therefore no admission of any person into the theatre for entertainment. Where no entertainment was exhibited, an agreed weekly tax could not be demanded merely because the assessee had been permitted to pay tax on a weekly basis. The demand for those two weeks was consequently without legal basis.

Conclusion: The petitioner was not liable to pay entertainments tax for the two weeks in question, and the impugned demand was illegal and liable to be quashed. The amount collected for those weeks was directed to be refunded.

Ratio Decidendi: Where no entertainment is actually exhibited and there is no admission of persons for entertainment, entertainments tax cannot be levied or demanded merely on the basis of a weekly payment arrangement.

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