1988 (3) TMI 432

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.... shall be levied and paid to the (State) Government (except as otherwise expressly provided in this Act), a tax (hereinafter referred to as the entertainments tax) calculated at the following rates, namely: Rate of tax Where such payment (inclusive of the amount of the tax)- (i) is not more than (thirty paise) One-fourth of such payment. (ii) is more than (thirty paise) but is One-third of such payment. not more than (one rupee and fifty paise) (iii) is more than (one rupee and fifty Two-fifths of such payment. paise). Provided that in the case of cinematograph exhibitions, the tax shall be calculated at the rates specified above on each payment for admission, after excluding from such payment the amount of the tax: (.........

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....o the State Government every week as specified in the corresponding entry in column (3) thereof. THE TABLE ...... ...... ..... (2) The amount of tax referred to in sub-section (1) shall be payable by the proprietor, irrespective of the actual number of shows held by him in a week." 4.. Relying on the word "admission" available in section 4 of the Act, Mr. R.D. Indrasenan, learned counsel for the petitioner, submits that the liability to pay tax even under section 5-B(2) of the Act arises only if there had been conduct of shows in the cinema theatre. In the instant case, it is common ground that there had been no shows on the following days: Weeks ending 25th November, 1979, 2nd December, 1979, 16th December, 1979, 27th January, ....

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....are allowed inside the auditorium to see the cinema by paying the charge specified in the ticket that is issued to them, which includes also the entertainment tax. In other words, it is the cinema-goers who pay the tax and the owner of the theatre collects the tax by issuing tickets to the customers, only as collecting agents. The owner of the theatre has to collect and pay what had been collected every week by way of entertainment tax. 6.. In the instant case, Mr. R. Lokapriya, learned Government Advocate (Taxes), would vehemently contend that the petitioner has opted as an assessee under section 5-B of the Act and as such it is not open to him to raise such a contention. This contention is untenable because section 5-B is subject to....