https://www.taxtmi.com/caselaws?id=156493 Sections 5-A and 5-B of the Tamil Nadu Entertainments Tax Act, 1939, as amended, were challenged as ultra vires and arbitrary because the compounding scheme taxed theatres on gross collection capacity rather than actual collections. The Madras HC held that the compounding method had already been upheld in earlier decisions, that the Legislature and Government were competent to prescribe such a tax model, and that the theatre classifications had a rational basis. The constitutional challenge therefore failed, and the provisions were upheld as valid. en-us Mon, 10 Oct 1988 00:00:00 +0530 Fri, 20 Sep 2013 17:01:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156493 Sections 5-A and 5-B of the Tamil Nadu Entertainments Tax Act, 1939, as amended, were challenged as ultra vires and arbitrary because the compounding scheme taxed theatres on gross collection capacity rather than actual collections. The Madras HC held that the compounding method had already been upheld in earlier decisions, that the Legislature and Government were competent to prescribe such a tax model, and that the theatre classifications had a rational basis. The constitutional challenge therefore failed, and the provisions were upheld as valid. Case-Laws VAT and Sales Tax Mon, 10 Oct 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156493