Entertainment tax exemption cannot be denied on subjective objections where the film falls outside the policy exclusions.

The exemption policy made entertainment tax exemption the rule for Gujarati colour films and denial the exception, limited to films depicting listed social evils or matters against national unity. Refusal could not rest on subjective disapproval of homosexuality, an 'A' certificate, or a view that the film was unsuitable for family viewing. Read as a whole, the film was found to depict a person's struggle and dignity rather than propaganda for an unlawful ideology, and speculative law-and-order concerns could not justify withholding a policy benefit. The film was therefore entitled to exemption, and the authority was required to grant it.

---

---

Issues: Whether the refusal to grant entertainment tax exemption to a Gujarati film on the ground that its subject matter was controversial and allegedly promoted homosexuality was consistent with the Government resolution granting exemption to all Gujarati colour films except those falling within the specified exclusions.

Analysis: The exemption scheme made grant of tax exemption the rule and denial the exception, confined to films depicting evil customs, blind faith, sati, dowry, such social evils, or matters against national unity. The Court held that the authority could not refuse exemption merely because the film dealt with homosexuality, received an 'A' certificate, or was thought to be unsuitable for family viewing. The objectionable passages, when read as a whole, were found to present a narrative of a person's struggle and dignity, not propaganda for any unlawful ideology. The Court further held that speculative concerns of law and order, or personal disapproval of the subject, could not justify denial of a benefit flowing from a policy, especially where the film did not fall within any of the stated exclusions.

Conclusion: The refusal to grant tax exemption was unsustainable. The petitioner's film was entitled to the exemption under the policy, and the authority was directed to grant the benefit.

---