Statutory composition assessment must reflect the actual ticket rate charged; unsupported enhanced-rate fixation cannot stand.

A statutory composition amount under the Rajasthan Entertainments and Advertisements Tax Act had to be fixed on the basis of the criteria actually applicable under the scheme, and the authorities were required to consider later material showing that enhanced ticket rates were not enforced. In the absence of evidence that higher rates were in fact collected during the relevant period, fixation on the enhanced basis was not justified. An admitted calculation error also required correction, so the composition order was unsustainable to that extent and the matter was remitted for recomputation on the proper old-rate basis.

---

---

Issues: Whether the composition amount could be fixed on the footing of enhanced ticket rates when the assessee had subsequently informed the authorities that the enhanced rates were not enforced and there was no material showing collection at such enhanced rates.

Analysis: The composition scheme under Section 6(3) of the Rajasthan Entertainments and Advertisements Tax Act, 1957 required fixation of the amount on the basis of the relevant criteria under the scheme. The subsequent communication stating that the enhanced rates had not been implemented was a material fact which the authorities were bound to consider. In the absence of evidence that the enhanced ticket rate had in fact been charged during the relevant period, fixation of composition on the enhanced basis was not justified. A further calculation error in the order also required correction.

Conclusion: The composition order based on enhanced rates was unsustainable to that extent and was liable to be set aside for fresh re-calculation on the old rate for the relevant period, with correction of the admitted calculation mistake.

Final Conclusion: The assessee obtained partial relief and the matter was sent back for re-computation of the composition amount on the proper basis.

Ratio Decidendi: When fixation of a statutory composition amount depends on the actual rate charged, the authority must consider subsequent material showing that the enhanced rate was not enforced, and an unsupported assumption of enhanced collection cannot sustain the demand.

---