Entertainment tax on cinema shows upheld; broad taxing power and failure to prove discriminatory treatment defeated the challenge.

A taxing entry relating to entertainments was construed broadly to cover the act of entertainment itself, so a levy on each cinematograph show under the Cantonments Act fell within legislative competence and was valid. The challenge that the higher rate on the appellant's cinema houses violated equality also failed because the evidence did not show that the other cinema houses were similarly situated. Differential taxation could be justified by factors such as seating capacity, locality, patronage and surrounding circumstances, and the appellant did not discharge the burden of proving real discrimination. The tax was upheld on both competence and equality grounds.

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Issues: (i) Whether the levy of tax on cinematograph shows under the Cantonments Act was within the legislative competence conferred by the taxing power relating to entertainments; (ii) Whether the higher rate imposed on the appellant's cinema houses was discriminatory and offended equality.

Issue (i): Whether the levy of tax on cinematograph shows under the Cantonments Act was within the legislative competence conferred by the taxing power relating to entertainments.

Analysis: The taxing power under the relevant legislative entry was construed broadly. The expression covering taxes on luxuries, entertainments and amusements was held to refer to the subject of taxation as an object, and not merely to the persons who consume or enjoy it. Applying the principle that legislative entries receive the widest possible construction and include ancillary and subsidiary matters, a tax imposed on each show of a cinema was treated as a tax on the act of entertainment itself. It was therefore not a tax on professions, trades, callings or employments.

Conclusion: The levy was within legislative competence and was valid.

Issue (ii): Whether the higher rate imposed on the appellant's cinema houses was discriminatory and offended equality.

Analysis: The challenge under equality failed because no issue had been established on the evidence to show that other cinema houses were similarly situated. Differential taxation could be justified by relevant factors such as seating capacity, locality, patronage and surrounding circumstances. In the absence of material proving real discrimination, the onus of establishing unequal treatment was not discharged.

Conclusion: The allegation of discrimination was not proved and the equality challenge failed.

Final Conclusion: The tax was upheld on both competence and equality grounds, and the appeal failed.

Ratio Decidendi: A taxing entry relating to entertainments authorises a tax on the act of entertainment itself, and a constitutional challenge based on discrimination must fail where the challenger does not prove that the compared subjects are similarly situated.

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