1987 (8) TMI 423

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....the Karnataka Entertainments Tax (Amendment) Rules, 1986 (hereinafter referred to as "the Rules"). The petitioners are the exhibitors of cinematograph shows and are assessed to entertainment tax under the Karnataka Entertainments Tax Act, 1958 (the "Act"). The petitioner in W.P. No. 2054 of 1987 is an exhibitor in Pavagada. The population of Pavagada is less than ten thousand. Under the scheme of the Act two modes of levy of taxes are provided. Under section 3, tax on entertainment is levied and collected on the basis of admission to entertainments. The rate of such levy is provided in the table annexed to section 3 of the Act. Under section 3A, in addition to the entertainment tax payable under section 3, a surcharge is also levie....

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....der the rules framed in Part VI-A of the Rules, is provided a procedure for obtaining the permit for running cinematograph shows under section 4A of the Act. An application in form VI-A is required to be filed and the permit is issued in accordance with the provisions of the Act, in form VI-B. The permit so issued will hold good until it is altered in the circumstances referred to in section 4A(2). It is necessary to deal with some of the columns in this form VI-B. The tax is levied on exhibitors who come under the scheme of section 4A of the Act on the basis of the "gross collection capacity". This phrase is to be understood as provided in the explanation to section 4A. The "gross collection capacity" in relation to a cinema theatre mea....

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....ral grounds. Sri B.G. Sridharan, learned counsel for the petitioner in W.P. No. 2054 of 1987, and Sri B.V. Katageri, learned counsel for the petitioner in W.P. No. 9510 of 1987, have addressed arguments on this point. Their main contention is that the insistence on maintaining and submission of extracts of such accounts, is ultra vires the Act, and is wholly unnecessary for the purpose of levy of entertainment tax under section 4A of the Act. These two writ petitions were heard along with W.P. No. 13638 of 1986 (Nirmala Chitra Mandira v. State of Karnataka printed at page 264 supra) in which the provision of section 4A(6) as inserted by Karnataka Act 22 of 1985, is challenged. Sub-section (6) is reproduced below: "It shall be presu....