TaxTMI 
TaxTMI 
2007 (11) TMI 395
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.... judge of the Rajasthan High Court at Jodhpur, allowing the revision filed by the respondent. The said revision petition was filed under section 86 of the Rajasthan Sales Tax Act, 1994 (in short, "the Act"). Factual position which is almost undisputed is as follows: The appellant is an exhibitor of cinematograph films. On February 3, 1996 cinema hall of the appellant was inspected by the Commercial Tax Inspectors. At that time a movie "Alladdin" was being shown in the morning show. At the time of inspection, 878 viewers were found watching the movie without tickets. It was found that the daily collection register maintained by the appellant was not properly maintained. The inspectors put their signatures after drawing a line in the re....
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....s upheld while setting aside the penalty imposed under section 10(3)(b)(iii). The appellant preferred an appeal against the said order before the Rajasthan Taxation Board, Ajmer (in short, "the Taxation Board"). Before the Taxation Board, it was contended that the total cost of the tickets was Rs. 3,006 and penalty of Rs. 4,39,000 at the rate of Rs. 500 per viewer was unconscionable. The Taxation Board found that the penalty that was imposed was not imposable at the rate of Rs. 500 per viewer and the maximum penalty imposable was Rs. 500. Revenue filed a revision petition as noted above and by the impugned order penalty imposed by the assessing officer was restored. In support of the appeal, learned counsel for the appellant submit....
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....contravenes any of the provisions of this Act or the Rules framed thereunder for which no other penalty has been provided under this Act, shall be liable to pay by way of penalty, in addition to the amount of tax payable by him a sum not exceeding Rs. 500. Section 10 of the Rajasthan Entertainments and Advertisements Act, 1957 from 1982 10.. Offence and penalties.-(1) Notwithstanding anything contained in any law for the time being in force, a ticket for admission to an entertainment shall not be resold for profit by the holder thereof. (2) Whoever resells any ticket for admission in contravention to the provisions of sub-section (1) shall, on conviction before a Magistrate, be liable to pay fine which may extend to two hundred rupees....
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....han Entertainments and Advertisements Tax Act, 1957 with effect from July 31, 1998 10.. Offence and penalties.-(1) Notwithstanding anything contained in any law for the time being in force a ticket for admission to an entertainment shall not be resold for profit by the holder thereof. (2) Whoever resells any ticket for admission in contravention to the provisions of sub-section (1) shall, on conviction before a Magistrate, be liable to pay fine which may extend to two hundred rupees. (3)(a) The proprietor of an entertainment or any person employed by him in any place of entertainment, who admits any person to any place of entertainment in contravention of the provisions of sub- section (1) or sub-section (2) of section 6, or (b)....
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....es two types of penalties. The first relates to cases covered by clause (a) and sub-clauses (i) and (ii) of clause (b). The second relates to sub-clause (ii) of clause (b) of sub-section (3) of section 10. The case at hand relates to clause (a) of sub- section (3) of section 10. If the position was clear as contended by learned counsel for the State that the penalty is to be at the rate of Rs. 500 per person, there was no reason for the amendment which specifically provided for imposition of penalty per person. The Statement of Objects and Reasons for the amendment also throws considerable light on this position. The same reads as follows: B. Amendment in the Rajasthan Entertainments and Advertisements Tax Act, 1957 Certain amendments....
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....e interest of State revenue, new section 13D, and to provide for rectification of mistakes apparent from the record, new section 13E; are proposed to be inserted vide clause 19 of the Bill. Some of the consequential or minor amendments are also proposed in various sections of the Act of 1957 vide clauses 10, 11, 17, 20 and 21 of the Bill. Extract of the Rajasthan Finance Bill, 1998-Relevant portion: 15.. Amendment of section 10, Rajasthan Act No. 24 of 1956: In section 10 of the principal Act,- (a) for existing clause (b) of sub-section (3), the following clause shall be substituted, namely: "(b) the proprietor of any entertainment who- (i) fails to pay the tax due from him under this Act within the prescribed time, or (ii....