Harmonious construction of entertainment tax entries limits "contiguous area" to land outside another municipality's jurisdiction.

Competing entertainment tax entries must be read harmoniously where municipal jurisdictions overlap territorially. The phrase "contiguous area" under the Andhra Pradesh Entertainments Tax Act, 1939 does not extend to land already within another duly constituted municipality, because that construction would create conflict between rival rates and place the tax outside the local authority having jurisdiction over the theatre. Applying that construction, theatres within Kovvur municipality were taxable only under the entry applicable to Kovvur and not under the higher-rate entry for the contiguous area of Rajahmundry; the higher demand could not be sustained.

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Issues: Whether theatres situated within the limits of a third grade municipality but also within 6 kms of a selection grade municipality are liable to pay entertainment tax under the higher-rate entry applicable to the selection grade municipality or under the lower-rate entry applicable to their own municipality.

Analysis: Section 5 of the Andhra Pradesh Entertainments Tax Act, 1939 creates different tax rates for theatres situated in specified local areas and their contiguous areas. A literal reading of the competing entries would produce overlap and conflict where a municipality lies within 6 kms of another municipality of a different grade. The expressions in the table therefore require reconciliation so that the statute does not operate at cross purposes. The proper construction is that the phrase "contiguous area" does not extend to an area already comprised within the jurisdiction of another duly constituted local body. Section 13 also supports this view because the tax is intended to be paid over to the local authority having jurisdiction over the theatre and not to a different municipality with no connection to it.

Conclusion: The theatres situated within Kovvur municipality were not liable to be assessed under the higher-rate entry for the contiguous area of Rajahmundry; they were liable only under the entry applicable to Kovvur municipality.

Final Conclusion: The tax demand at the higher rate could not be sustained, and the writ petitions succeeded.

Ratio Decidendi: Where competing taxing entries would overlap territorially, they must be construed harmoniously so that a contiguous area does not include land already falling within another municipality's jurisdiction, and the tax must be levied according to the theatre's own local authority.

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