1988 (4) TMI 414

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.... of the Court was delivered by P.A. CHOUDARY, J.-These two writ petitions raise questions about the meaning and scope of section 5 of the Andhra Pradesh Entertainments Tax Act, 1939. Under section 4 of that Act, entertainment tax is leviable on the gross collection of every show held in the theatres specified in column (2) of the table appended to that section and located in the local area spec....

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....porations and Secunderabad cantonment area and contiguous area of 6 kms. We are not directly concerned with that area. We are concerned with the next entry (b), viz., selection grade municipalities and the contiguous area of 6 kms. thereof. The question is as to the meaning of the contiguous area of 6 kms. Now the authorities in this case are attempting to collect tax under section 5 from these tw....

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.... The case of the authorities is that Kovvur municipality which is a third grade municipality within whose territorial limits these two theatres have been located, is situated within the contiguous area of 6 kms. of Rajahmundry municipality which is a selection grade municipality and for that reason these theatres should pay the tax at a higher rate which is mentioned in item (b). The question whe....

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....he only reasonable way to avoid this mutually destructive war between entry (b) and entry (f) and to bring about peace between them is to read the words "contiguous area" as referring not to a contiguous area which is under the jurisdiction of another local body. In other words, where the contiguous area of a municipality is itself a part of a duly constituted municipality, the rate of taxation th....