Entertainment tax on video theatre exhibitions includes video films and permits gross collection capacity to be computed through adopted licensing rules.

Video film exhibitions through cassette recorders in video theatres are treated as entertainments within the Andhra Pradesh Entertainments Tax Act, 1939, because the statutory definitions of "entertainment" and "cinematograph film" are wide enough to cover them. A separate regulatory regime for video theatres under the 1993 Act does not remove such exhibitions from the tax net. Seating and licensing standards adopted from the Cinemas Rules by governmental orders may be used to determine gross collection capacity, and that capacity forms the basis for levy under the Act.

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Issues: Whether exhibition of video films through video cassette recorders in video theatres is liable to entertainment tax under the Andhra Pradesh Entertainments Tax Act, 1939, and whether gross collection capacity can be determined by reference to the adopted licensing rules under the regulatory regime for video theatres.

Analysis: The charging provision in the Andhra Pradesh Entertainments Tax Act, 1939 applies to entertainments held in the theatres specified in the Act and taxes them on the basis of gross collection capacity per show. The definition of entertainment and cinematograph film is wide enough to include video films and their exhibition through video cassette recorders. The fact that the A.P. Exhibition of Films on Television Screen through Video Cassette Recorders (Regulation) Act, 1993 created a separate regulatory regime did not remove video film exhibitions from the scope of the entertainment tax statute. The seating and licensing parameters for video theatres were validly adopted from the A.P. Cinemas (Regulation) Rules, 1970 by governmental orders issued under the 1993 Act, and those parameters could therefore be used to determine gross collection capacity.

Conclusion: Exhibition of video films through video cassette recorders in the petitioners' theatres was held taxable under the Act, and the levy based on gross collection capacity was upheld against the petitioners.

Ratio Decidendi: Where the statutory definition of entertainment and cinematograph film expressly covers video films, a separate regulatory enactment for video theatres does not exclude such exhibitions from entertainment tax, and the adopted licensing rules may be used to compute gross collection capacity for levy purposes.

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