Compounded entertainments tax cannot be demanded for weeks with no cinema shows or admissions under the charging scheme.

Compounded entertainments tax under the Tamil Nadu Entertainments Tax Act was considered payable only where the charging provision applied to actual admissions for payment. Section 4 was treated as the operative levy provision, while section 5-B(2) fixing a weekly compounded amount remained subject to that charging scheme. On that construction, if no cinema shows were conducted and no admissions took place during the relevant weeks, no tax liability arose for those periods. The demand for compounded tax for weeks with no shows was therefore unsustainable, and relief followed for the theatre owner.

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Issues: Whether compounded entertainments tax under section 5-B(2) of the Tamil Nadu Entertainments Tax Act, 1939 was payable for weeks in which no cinema shows were held, having regard to the charging scheme in section 4 of the Act.

Analysis: Section 4 treats entertainments tax as a levy on each payment for admission to an entertainment, and the theatre owner collects the tax only when there is actual admission of customers on payment of the ticket amount. Section 5-B(2), though prescribing a weekly compounded amount irrespective of the number of shows held in a week, remains subject to the charging provision in section 4. On that construction, where no shows were conducted and no admission took place during the relevant weeks, the tax liability under the Act did not arise for those periods.

Conclusion: The demand for compounded entertainments tax for weeks in which no shows were held was unsustainable, and the petitioner was entitled to relief.

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