TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether sub-section (1-A) of section 4-A of the A.P. Entertainments Tax Act, 1939, which imposed a flat tax of Rs. 50 on every show of films exhibited on television screen through video cassette recorder, was unconstitutional as violative of Articles 14 and 19(1)(g) of the Constitution of India.
Analysis: The levy treated video parlours as a distinct class for taxation, but imposed a uniform and substantially heavier burden than that applicable to cinema theatres, notwithstanding that cinema theatres generally had greater seating capacity and higher earning potential. The tax on video parlours was disproportionate to the collection per show in many cases and, on the facts, could operate as a burden that compelled closure of the business. A taxing measure may classify and choose objects for taxation, but the classification must not amount to hostile discrimination, arbitrary treatment, or a device to eliminate a lawful business under the guise of taxation. Where the burden is plainly excessive in relation to the nature of the business and lacks a rational basis, the levy becomes confiscatory and may amount to colourable exercise of power.
Conclusion: The impugned provision was unconstitutional for violating Articles 14 and 19(1)(g), and the levy of Rs. 50 per show on video cassette recorder exhibitions was struck down.
Ratio Decidendi: A taxing provision that imposes a plainly discriminatory and confiscatory burden on a particular class of lawful business, without a rational basis for differential treatment, is liable to be struck down as violative of Articles 14 and 19(1)(g) of the Constitution of India.
TaxTMI 
