Karnataka High Court
Cauvery Theatre vs Union Of India on 17 September, 2008
Author: D.V.Shylendra Kumar
Bench: D.V.Shylendra Kumar
i COURT OF KARNATAKA HIGH COtUR'!:' OF KARNATAKA HIGH COURT OF KARNATAKA I-'SSH COURT Of KAKNAIAKA HIUH uuum ur zxnm-uaunnn rlnal . ~..u-9..
1 @/
IN THE HIGH COURT OF KARNATAKA
AT BANGALORE
Dated this the 17*" day of September, 2008
BEFORE:
THE HOWBLE mt. JUSTICE D v 4'
Writ Petition No. 1 9302 of 200-2? fir»-ET; . _
Cgw
Writ Petition No. 1 1520 (#3007
In cw No. 1 9302 of 2007 mm)
QETWEEN
1. CAUV7F.3RY5fT'I:} EA'1'«RE:. _ V V
Not; 8;'.1;.s:x:~1.z<EY-..R.QA--D," _ "
BAN.GA»LCi_RE -~ 560*oc3, 3.
"REE BY I13. PROPRIETO'R,....
N. PRA:<AsHi,AGED. 45 YEARS,
2. 's<:AI;,AsHTH._EA'1*12__E;»..'
Ne, E3, {89','1)",AA5mV MAIN,
_ wr'cRoss,',.GANm--i1NAGAR,
" BANGALORE - 550 009,
' ,__12a,:>. BY I'PE:...P.EOPRIETOR,
SRLP. NARAYAN REDDY,
AGED" :55 YEARS,
e U.RVA'SHI THEATRE,
I v.SY;'?~}O. 10/1, 10/2, 10/3, 10/4
HLSIDDAIAH ROAD,
~~ BANGALORE - 550 027,
'=---REP. BY ITS PROPRIETOR,
am. K.C. RUDRE GOWDA,
AGED 57 YEARS,
4. PALLAVI THEATRE,
SAMPIGE TANK ROAD,
2
BANGALORE ~-- 560 027
REP. BY ITS PROPRIETOR.
SRI. T. RAMAKIHSHNA,
AGED ABOUT 65 YEARS,
TRIBHUVAN THEATRE,
NO. 5, (89/1], 573 MAIN,
15'? CROSS, GANDHINAC.%R,
BANGALORE -- 560 009,
REP. BY FPS PEOPRIETOR, ._
SR1. P. NARAYAN REDDY,
AGED 55 YEARS,
PVR THEATRE, «
s'I.No. :52 AND 6772, 67,/3,,,67/4 '
AND 67/5 OF' AEUGODI VEMAGE, '
BEGUR HQBLI, _
BANGALORE SOU'E~'H 'r:1.Lu1V<,'- ,
NEW CORPORATEQEN-WARE) ,N0;'--2"1..,, A
HOSUR ROAD, BANGALORE ' "
REP. BY ITS PRQPR1ET0R~ _ _ 'V
v1sHALv1_Ki=2AM,, AGED 30 YEARS, j' PF/I'ITIO1NERS
:(3*j3'y~ $r:;.j"2:.v. '.i)VIivafl11aJ1jay, Adm}
Euvmion OE iNi3'£A',"
REP, BY SECRETARY,
' » ,M1NIs'£?1:2?"0F INFORMATION
AND BR'(3A1)cA:sT1NG,
$200M NO. 555, 'A' WING,
_ .. s1eiA,s*':f¥21 BHAVAN,
" E. _"-NEW DE§,HI -- no om.
S1"}¥TE:OF KARNATAKA,
'REP-;" BY CHIEF SECRETARY,
EHDHANA SOUDHA,
.' -EANGALORE ~»- 550 001.
THE COMMISSIONER OF
COMMERCIAL TAXES,
VANIJYA TERIGE KARYALAYA 1
{COMMERCIAL}, GANIJHINAGAR,
BANGALORE -- 550 009. RESPONDENTS
I133! Sri. V.Y. Kumar, CGSC for R1; Sri. Udaya Iriolla, Adv. Genera} H I T A/W I{.M. Shivayogiswamy, HCGP for THIS WRIT' PETITION is FILED~VLIN£)E.RME§i?'£'iC§.F5S.4.'226'v_AI§¥B 227 OF THE CONSTITUTION OF' INDIA, 1_=fRETIz§<3T--o__1Es1qE 5 v.~*R1T _j OF MANDAMUS OR AN APPROPR.IAT'.,ET ~WRl'T_ OF Am'-_O'3.'HER A NATURE OR DESCRIPTION FOR BECL-.ARING..".THAT S--E(2T§ONS 3(_1)(B), SA, 30 AND 4 0E THE: KARNATAKA EErvER?A:Nry1ErNI's TAX ACT, 1953 OPERATE AS A wo;,ATioN OEAEETICLES 14, 19(1}9A) AND 19(E)(G) OF THE CONSTITUTION OF EEDIA IN}RESPEC'E' OF THE PETiTi0NEEs BUSINESS A-ND In WPNG. 1152ao,r2o'0-':9 5.152%
1. SR} LAi_k;sH13~ei1_<:15~IiTR:§. MAEIJIRE, 1sr MAIH..'I'A'IARE§s2ERE, " ' ' z::.R; _COLL-EGE' RQAD; .. " 2. V13AN<3ALo1<<E3_:--_550 991, REP; 83'. I'rsv':?Ie()P221ETo12.. =._sR1. -S.VN;'VCI~§_1KKA'A_Ni'~2AiAH 'REDEY, MA..IOR"mz E5331, :2. ESHWARI 'THEATRE;
» E0. 43,9, :00 FEET ROAD, » KP.THRIGUPjP_E_,¢ .
3-B&N'A.SHANKARI III STAGE, » , _B.AI€C3A--LORE - 560 035, E. EEF-. BY PROPRiE'I'OR, " 'E-R;..,_E.v';w'sR1NIvAs, MAJ.(§_RE"IN AGE,
3. H SR1. BALAJI TALKIES,
-MANGALAVARPET, CHANNAPATNA, BANGALORE RURAL. DISTRICT, REP. BY ITS PROPRIETOR, SR1. C. RUDRAPPA, MAJOR IN AGE, n. :.u¢-nu. n. _._ ....-............. _.... Mama IN SR1 SRINIVASA THEATRE.
15" MAIN ROAS, S,G. PALYA, BANGALORE -- 560 029, REP. IBY ITS PROPRIETOR, SRE. SN. ANNAIAH REBEY, MAJOR IN AGE, SR1 BALAJ1 TALIGES, TAVAREKERE, BANGALORE SOUTH 'I'AE_,U~K, REP. av rrs PROPRlETOR'»,.._ SR1. s.N. SREENIVASA RE_DI:'.Y.' MAJOR m AGE,' = * ' KAMAKYA CHITRA MANEMRA, ' 100 FEET_ROAD,....._ V ..
§{ATHRIfC;UPPE,j' ' , _ - ~ BANAsHa;NKARi1~.1ii%si*AGE,_ BANGEE 1_.c;..!;z.E;'.---':":»r_5_<J_' 08.5, V REP. B;'{'1_fI'S PR.OPR.'iET@Rr ' "saw, MU'RAL},., V * * PETITIONERS _ " _ Sr. Counsel for Ms. S». _ai{1d Sri. Nanda Kishor, Advs.] ' MATE OF' i{A1i¥1~:A'rAxA BY-I'_I"s COMMISSIONER 85 §R:Nc1PAL SECRETARY.
«9*;vNA2a;::E DEPARTMENT, .Vf'f)§7lANA SOUDHA, BANGALORE -~ 560 001.
Z ';E'I~iE'. COMMISSIONER OF' COMMERCIAL TAXES, KEMPEGOWDA ROAD, GANDHINAGAR, BANGALORE -- 560 009.
3. THE ENTERTAINMENT TAX OFFICER, H CHQCLE, SRZNIVASA COMPLEX, SHESHADRIPURAM MAIN ROAD, SHESHADRIPURAM, BANGALORE.
4. THE ENTERTAINMENT TAX <:}EEIc:;«:f.E_;, * CHANNAPATNA, * _ ' ._ A ~ BANGALORE RURAL DISTRICT; . ARESPONDENTS [By Sri. Udayafléila, Adv;
A/W K.M. Shivay6gisw_amy,'i%Cv(}P] THIS WRIT PE'I'I'.I_'I"ON IS E11.Ea__ LJNEEE ARTICLES 225 AND 227 cm THE cc:>NErI'rU"r1oN"E_Q'E,1Nx:a:A,PRAYING TO DECLARE SECTIONS 3113(3) OF TI-IE,§sLAR1*?ATAKA~.f_EN*1'ERTA1NMENTS TAX ACT, 1958 AS AMENDE'D'~E&f AMENDMENT OF KARNATAKA ACT NO. 30/ 1958--{K'fi...R1*1ATAKAg AC'T Mo; 30./_19f58} (EXTRAET OF wmcn IS PRODUCED ASVANNEXURE --¢.:41';« A1»m"sEcT1oN 3-A IN RESPECT OF' "O'F!-IE::R 'rH.EE'1*EEs*-.Er.H1=cH' ISVMAEKED AS ANNEXURE --- J AS UNc0;~:s'riEfU'i?zc;r¢AL AIED-V010" IN gso FAR AS PETITIONERS ARE GONG-EERNEIB.
THESE EE*r1"'?§QNiS'*--«§i A%/zNG EEEN HEARD AND RESERVED, comma ON FOR '?RONOUNCEMENT op' ORDERS, THIS DAY, THE coumj MADE THE FOLLOWING:
0 R D E R A are all exhibitors of cinematograph shows afid. xowners of theatres where such cinematogaph " Ehgrws are arranged for public viewing by collecting an entrance fee.
_. _ .-- ---. .- --uu-uruu-1 an lliqlll \a\JIJl\I \ll" RHKIVHIHRH "lb?! LUUKI
2. The state of Karnataka has enacted the Entertainments Tax Act, 1958 $0 _ 1953} [for short, the Act], wettest government to levy and a , entertainment tax at a admission charges charged by' on viewers who come to the th_eatre$...t($§ Section 3 of the Act, which Seetigiifiwhich reads as under:
3: for admission to _ . eflmfitairwfients; -- (1) There shall be ' _ to the State Government ttentefiainménts tax on each payment for .. acirnis~sion"e3ccluding the amount of tax, to cir:._entert«_2ir1ment. - _ "(mi specified in sub-clause (1') of czause
(e) of Section 2 at 70 per cent of such payment; and (12) specified in sub~clause (ii) of dense
(e) of Section 2 at 40 per cent of such payment.
TABLE xxxxx \ l...I£'\!LI \dI\.l'1\..ln:n:L:u .4. ... 7 (1-A) 1?: respect of erztertainmgénts referred to in sub-clause (iii) of clajuse'-«..(e=,l of Section 2, other than an V"
on which tax is levied under A4--!7'2"or'jX 4-F, there shall be levied 1? ._ State Government on. each; for admission excludifls] of tc.2__ 5 such entertainment, ":ente:rtt2infnet¢ts at 2 . the rate of tengper cent, If for admission, __ 'V of tax, is not less d lame' d in the caseof a circus or drama or_magVic .siww"'vor'=ga:2?"ne or sport, where it ghvdow.nc. n v- wgytfiing contained in si41:%7eectic2t't'(?1)..a";r1d eeection (1 -A) there 'shal£*g:.;be"*--£e:-zied paid to the State . {except as otherwise L t 6-tPF?é'J$Sl5f._ptoigided in this Act) on every tconzplimentaty ticket issued by the _4 p?'0!??739tcr "of an entertainment, the tax at the appropriate rate ' in subsection (1) and sub-
_ "section (1-A) in respect of such V"ej*en't-ertatnment, as gffitll payment had
-- made for admission to the igmtertainment according to the class of . 'V " seat or accommodation which the holder of such ticket is entitled to occupy or use; andfor the purpose ofthis Act, the holder of such ticket shall be deemed to have been admitted on payment:
1 Hana Hsnnuruwuu _u\ Juana ........ .....-......-.- _. .. 8
Provided that where the seatzor accommodation which the hoider ofa ticket is entitled to occupy .. dzflerent fiom the classes seat]-or:"v accommodation inside the auditoriiim of place of and fa?' K V' to the said seat or _ j payment is fixed, ofsuch shall be deemed _to beentitled to"-loc¢u'py'or"~ use the class V of setzit 'or accommodation and' shallbforpwpcses of this Act, be deemed 'to"have been on payment of for such highest of sea}; of (3) .NottU_ithstand1'n_g _ aiiggtiubtg " contaoied in {J4-A) be levied and ; V-to floiremment on every V the proprietor of an '''' ofrpayment as defined in o "(iv-a) of clause (i) of Section 2, p the tax at the rate specflied b in (1-A) in rmpect of such ., eritertairtnwnt as iffidl payment had been made for admission to the entertainment to the class of seat or _ _ 'accommodation which the mmon fiadmitted occupies or uses; and for the 'V of this Act, the person admitted shail be deemed to have been admitted on 'V " payment:
Provided that where the admission made to an entertainment whether or not having dvflerent classes of seat or accommodation inside the place of entertainment is wholly on payment as 12 intemationally reooamsed award notifiod by the State" Govemment,_.w~._"-«no. entertainments tax shall be payabkfor-4"
period of six months from {as * may be Government.
Explanation. --- xxxxx ' V the tax ievicd under Sectioi1_ 3-..of the Act "1':"ate"jof 40''-% of the entry fee is a 'passed 'on.to'§tI1e viewers is reduced to nil rate "oinor1iatog'aph shows of Kannada, Kodavza, rpm ofoangax-a language films whiqh State of Karnataka and cxhibimd. 'tfi'i:;-;o..1_:arc:-- .in._th¢' staté.
3. Under t11<§'zzcij.z is an additional levy in terms of fiectgion of Act, which rmds as under: V. "oalculated at the V' rajzmely. -
Adtfitioiaol tax on cinematoyraph " 3. M the case of cinematogmph . in"-"addition to the tax leuiable 3 and 3--A or the tax "under Section 4-141, there shall be levied! andpaid to the State Government a following rates, specified by 3 H9]!-I VXVLVNXVX JD 1350''! l-''"" """""""""'""" "' """ " ' ' ' " ' 13 TABLE { . . ' -""
Payment fer .c:r£r.':.zsszon Si. (exotuding entertainment tax) of ' V. ' No. aperson to the highest class of spar or __ ' "' V' * does not exeeedfive is ' exceeds five rupees bu_t"*dOe_s" Fifiyfizte not exoeedfifleen r'uP*'3es = ' % V c. exceeds ffieen n.¢pees*--..,e"l52gt v=~__ t ' 9;' ' I ' ' E 33*?' ct. exceeczsnuenty__mpees.... One-..m¢':ndred and eg hteen rupees ..._..._ Provided tin, ' theljehase of a Kodava, Konkczni er' Tu.Zt£.fi3?7l» in additidn to tax let/fable under _ ;',--A,7 the tax payable under sub?-seea*.ie-n be at the following ' Pa3;meht_for..c£e?Jn:1ssion Sl. (exeludi7zg~eiite:1¢i2'nrnent tax} of Rate of tax per No. a person class of show _: ' " e. seat'. or accommodation exceedszjflteen rupees but does Thirty-eight rupees ',~ five rupees Eighteen rupees 22, ' five rupees but does Thirty rupees T. fifieen rupees net. exceed twengy rupees V V .V exceeds tzvenglmpees Fbrty-eight rupees ~ P'rov1'ded fizrther that in respect of cinema . theatres paying tax in the manner specified in Section 4-24, the tax under this section shall be paid at the following rates, namely. - v H91}! V)lV.l.VN!lV)l :10 131103 H92:-4 \flU.!\IAl)l\I\I .m Minn-\ an... .................... 14 I St ' Total pa*:.,mentfaf of ' aperson to the hzghestclassof seat or accommodation Rate per Does not exceed eight rupees l :A Exceeds eight rupees but does Fowivfieilfwet s is ~ not exceedfifieen rupees Exceeds fifteen rupees ' Provide' d alsowthat theatres paying tax marzner.VAspeaffied in Section 4-A, the tax umrler this sub- section in respeet of Kannada, Kodapa, ~--o_'r._T"ula film shall be at the following rates, 'aanzezgea ' show of a Total paetmenttféfltof a person the class of"
show Rate of tax per does aot«e:poeed does Eaot _exoee«:l _ rt:-peas exceeds jifieen jgtpees Thirteen rupees Twenty-five rupees Thirty-eight rupees [(22% No of a cinema theatre shall or, cause to be collected the tax payable 'under sub-section (1) from the rS°h,s admitted to the cinema theatre for = jentertairzment.
h {3} Efitlattuithstanding anything contained in 'subsection (1 ; no show tax shall be payable in respect of a cinematograph show of a Kannada, Kodava, Konkani or Tutu film screened in theatres situated within. the limits of any local authority (but excluding a cantonment board) or town or } WLVNXVH JO llnnfi Linux uuu.._...... ... - A --- -- 15 village having av. population not exaeeaiing fifteen thausand.
which is a tax at a fixed amount admission fee or rates fixed fof '1 hall. The additional seet$s_e%e%is'%esf1és43/- per show if the highest e11't'ii";.£_"fx3¢=,:_V 'Ea to get entry into the trass-etxe is between Rs 5/-- and R315/-, between Rs 15/- and 20/--, v6.5.3}. snsirit exceeds Rs 210/-, Rs 113/; (3) of Section 4 again I'edt1.'£:Ved'V .r€.spect of Kannada, Kodava, Konkarsi, language films screened at the tl1¢;aiI'f:fs the limits of local authorities, to be 'i;§:~..§titioI1ers are complaining that providing for diifersftit rates of levy of entertainment tax in respect of A "is exhibited in the same theatre only based on the V' in which the film is produceé, amounts to a 1 HGIIIJ lflflilitililuu _u\ nunnn nuuua s_n.._............ .. _-.-.. -_..... 'fl av-univlalrinrl FIHJI1 but: 17
Tulu or Banjara language films and in respect 'Section 4-A, a declaration is sought for that the rate of f,g;,~§"_fp'éia§}able under this section in respect of Ko§iava;.., Konkani, Tulu or Banjara ' it same rate of tax as is _1fospectJ"of Konkani, Tulu or 'tinder this Section i.e. all atiitiie same rate as is appficaiiie to__ Kodava, Konkani,
6. The that their fundaz11entai1"-ifigiit guaranteed under Article 19('1')(aiE"'ofV"t1ie, of India and the it Viiforwicarzyirlg on a profession or of th§:1i§.'cI;:1oice is also affected and it is for these "*A.If6asonsot;1e imyugried provisions are found fault with.
.__prihcipal challenge to the vafidity of those on the pxemise that the provisions though ~ a taxing statute, is nevertheless discriminatory, 9}}-I V)lV.i.VN2fV)I £0 .nInn'x unau Hxawlwluul-N ' HFJIH V)!V1VN§_VX :lO 13110.') H I('\ aursouvu 9
3. 8 for the reason that difierent rates of taxes are sought to be levied while exhibiting movies of different jtlfzat making a distinction in the matter of at' taxes are levied based only K discriminatory act and caniead to 'division on lines of language; that it of and discontent among people lananage, if the viewing of a movie Llajlguage is made costlier; has emphatically disapprovx-3-;d.V ' rates solely based on the antimthe statutory provisions should be declared to be unconstitutional' Vapnlying the law as declared by the in the case of AASHIRWAD IILMS as I 520077 6 sec 524].
respondents --- state and its officers functioning A 5.' the Act ---- had been notified and they have entered lh atbpearance through the learned government plea-tier. The e/t mom VHVLVNHVN so woos) Hem V)iV.l.VN8V)l so 1890:) Ham vslvivmxvu an m.-ma uamu ................... .. .........
-- -urn unrI:\:IrIl.l'Il\!"'l I1I\Jl"l \aWKi Ur 19 union of India has also been impleaded as party respondent in WP No 19802 of 2007, who notified and represented by the learned _
9. The state has filed its staiizeniientv of J No 1 1520 of 2007 and adbptee it 'petition
-- W? No 19802 of 2007 a.1so--.---
10. In the of the state, the distinctioii tax and dfiferential rate of tévlifgiodava, Konkani, Tulu or Banjara oft movies produced in languages ofifiei such as in Hindi, Tami}, feiugu on the other hand is sought me that Kannada film industry, which younger to the film industries of other and is in doldrmns not having sound béise, deserves protection for its survival and gjgeoii-Ifiigement for its progress. The main object of Vt . , _ 'V T rates of tax is to encourage the Kannada film ' HO ..Ixnf\'3 I-ICHLI I-I'\lhHl-lAluL.r\| um nu--un - ---- 20 industry; that if such protection is not given, Kannada fiim industry may perish leading to the "the culture and spreading of Kannada people; that the taxation measures' L which can be used to achieve that the number of vievr Kannada films is faiaiess Qiéwers of fiims produced in other Telugu, Tamil etc-., which ter1'itory--wise and audience therefore making' a industry and the film industiies 4' in other Languages such as Hindi,~ '_I.'eluVgu,a etc, is a reasonabie classification . " 'the object of promoting almost a sick Kannada the petitioners cannot complain of any actkof d,iserimination because of such classification for the ._'r.ea_son""that there is no discrimination so far as the "pe"tii:ioners are concerned; that they have not faced any "disadvantage vis-£1-vis other exhibitors in comparison to ) 3-l.'}iI-I HHHIHENWV J!' IHf\l"I'\ 1...I£\1I.! \nl'\IIrlIInl'IuI\II-l\I .if\ I\H"\r'\"'\ I Inn! I \-ul'\II.JII.ul'I.I\.lI-l'\I nit; rut-\r\-\ I l(\l||
--. run-1:IIir'1Il"IIInl'l I lI\Jl'l MUUKI Elf RHKEVHIRKA 5'5" 23
Kannada, Kodava, Konkani, Tulu or Ba11ja.ra languages; that it has a nexus to the object: of the has sought for dismissal of the Writ ' L. % 1 1. it is contended on behalfof of rejoinder that encouragir;g....V a totte1*i;ti'gsV_ fiim industry can be aehieveAd....Vf§y.s 'providihgv...cof1amensm'ate subsidies by the not by resorting to an act of Ailiibvidirzzg for such statutory provisions in Cjlirhich amounts to discfimmatisn not free from the vice of taken by the state to defend the statiite ttrretitlser made out on facts nor temgrble A' epefbre urged for allowing the Writ _ It "is one tfie premise of such pleadings, Sri B G Viearned senior counsel appearing for the in we No 1 1520 of 2007 and Sri K v Dhanajay, counsel for the petitioners in WP No 19302 of ' VHVIUMHHV an nan;-\-5 ...-.... . ....c .. .........u \l! nnmunuvmn HIUH COI 24 2007, have made submissions are heard. Sifi.Udaya Holla, learned Ad1_r_ocate_ argued State and its offieers, defending the x
13. Sri B G Sridharan, 'sentiiexji 'A J submitted that Section 3~Ce§n_ne Am, rateiioif tax in respect of Koiikaiii, Tulu or Banjam films to be granting total exemption from tax in respect the fol'; a lower rate of tax in respeetof iefiguages in Kannada, Kodava, Konkarxig 'er is aiso discriminatory and V. ' that the present situation is clearty ratio of the law laid down by the Supreme ofAASH1RWA.D mam [supra] and the _ fnwrit ipetitéofis are to be aliowed. K V Dhananjay, learned counsel for the
-~pet.itioners in WP No 19802 of 207, in addition to such ........ wnrunl us m-nnnuvunnn ruun LUU 27 indicated to be an independent Section in the scheme of the Act, it is virtually in the nature of j to Section 3 and should be read as part of 1,3 it and if so read, the charging of=._ discrimination, as urged eariier being a separate section die exemption cannot make much over aiiegations of discrimination and be declared as
17. Sri Udaya General, appearing has made a valiant efforts to defend' statutory provisions. It is:_,»fi3:fs_tly is a well settled principle of intei*pretation~«.of Censtitution and the taxing laws; that in 'the mattefté of _' tax, the Ie§'slatur.e has a lazger % to a specific person, place or goods, which jiwought within the net of taxation and as to V. be left out of the net of taxation and likewise, ' Wwiwfllfifiv J('\ I\ll\l'\"\ I Il.\.iI .. L4I\0|.zoIn.mn 93-1 on- these subrxiissiofisz i__ <3"
' " ;r;.vf'.
28 even in the matter of rates, as to who should be to tax at a higher rate and who should be fax at a lower rate; that such measures _ within the policy domain of mg stateeeeamee 4£.l"1e4'(:{')'zJ:._"1:'f$vvI'::A.7i11""- % not unduly interfere with enjcyesgt in the matter of choosing gs. ohzaxation or rates at which the en dfiferent persons. V pieced reliance on the fol1owir1g_"§;ie§:iV§§a§ioxv1;£3'oi*f_ in support of hsram or RAJASTHAN [AIR 209:; so 1533] rsoemiiraiv o§%_ H(J*mL a. RESTAURAN1' vs w\HQN or 1mm pun 1990 so 1637] _ PRADESH vs xamm macs 71 manners Iuzzusmms . us simmer UP 51933) 4 sec 24 --PARA 6] VV iZ.H?l'1'ON or INDIA vs PAR.-zmwazzazv MATCH
-ewomgts [(1975) 1 sec 3os--mm1o} Hem vxvxvmvx so .Lano:) Han-I vxvxvwavx so ,:.ano:a HQIH wummm. .E('\ E\Il'\f'\-'I I Iran I 29 we VISHAL mopemms PVT Lm us sum or UTTARPRADESH ggzooz: 11 sec 172 "'_.""-.93sR'A_ 12 8:16] 4.
18. It is also submitted on behalf of ithe so taxing measure can also be to. objectives and to reduce used to protect the infeiiior; that it can be achieved to the economically superior class' alezie the weak at a lower higher rate; that the state the appeals made by a survey and was convinced the industry was very weak tl1e'Vre--t.e.1n was also low and in support of véfhfle draws attention to the fact and not orilyviefglélced by the petitioners themselves but «ji_i.l'_aJ.$l)~facts 'figures placed by the state before the court, C1eei"ly indicates that the revenue in a movie theatre diannada films are exhibited is far less in ' H91" VXVIVNKVX :10 13303 VXVlVN3V)l 30 1.8903 H913 VHVIVNHVX JO LHROD HF'!!!-I \:f\l\:lI\:fl\l)!\-ni .:n nlnn-'1 unlu Huwtwmuwu Jf'\ Iunrs-n nan:
......... uvunl vr RAKNAIAKA I-HGH CO! 31 India and therefore submits that the statutory piiovisions are not in any Way discriminatory nor in ;.aJ}'ect the rights of the petitioners guaranteed iindierv the Constitution of India and 1-eg'%a;~d 4fi€i:S_Vp.1aCed""'.A I reliance on the decisions of die or ELEL HOTELS AND UNION or INDIA [.1 939(3) 598%; rename vs oovnnmmarr or 2 sec 643].
19. S11' placed reliance on the decision../s.Qf'Avi§:,S11pt§§taea in the case of DAV cotzaositsmm or pmmw [am 1971 Sc 1 731;. _.
. 2.0." "die general principles as emerges from the "nporx by the learned Advocate General are well'-. kn.oWn"'; and are not in dispute, in so far as the H :"'re1i.ance"'f)laced on the decision of the Supreme Court in ithiecase of DAV COLLEGE [supra] is concerned, the ratio Vi " 'of':t11is case is neither applicable nor advances the case of Jf'\ l\l(\I\!\ bltlnln ..
Hem VXVLVNRVM so mngg?§g;§__Lwg1vNaw :10 1.3
- nu-us»: mu I\r|l\l1.l"'|ll"'ll\l'| nuwn HUN 33
21. In so far as the act of discrimination is there is no denial of the fact that a in the matter of levy of entertaimcnent language of the film for entertainment tax. is amounts to an act of as the legislative competenee-%._ tax is concerned, it ienot issue here.
22. Any. of violation of ArticI,C" i'-gr. ' Constitution of India is "such an argument cannot be that no embargo is placed on . languages. This position takes e §;a;~'eT%o:j[::1ee§21aga:ion of violation of either Article 19(1)(a) cg fig; .b1'i"tbe; Constitution of India. A differential rate of tax c:xf t:.>tal exemption from levy of tax While can be a A "ii for examixmation on the touchstone of Article 14 of inc Constitution of India can not be a matter for V)IV1VNHV3E -If) i)H"I!T'§ ucuu I-nu.-.rn...nI\nuvu In-s nu-.4... . '$573 40 tax on the exhibition of cinematograph shows~T'VT()fs other languages also should be brought on a par as is levied in respect of cinematograph Kodava, Konkani, Tulu or Banjzéra tax levied under Section in v;i2., an exhibitor pays tax Section 3 and 3A or on the l in terms of Section 4~--A of the Act, applicabie in terms of tl'1e._" made aPP3iwb16 '10 non-Kannada, Banjara films and not at in general or in the main part of is that the proviso alone shqgxid and all other parts should " u;1oons1;itutionaL 2'7. is an exercise that can be the legislature and the duty of the ' is review and declare that legislative action is'"ofi'endi11g. When it is found that it is the proviso .T , _ 'constitutes the oflbnding part, as it seeks to carve ' H5)"-I VNVIVNNHY -If} i)lflt"I"'\ uniu wuulunnuuu an uunmxn. -
fi 42 $3 Fvnf lllutvlr Fvnaofle V IWIIGDDC' l' Col!-JLJKOOJ cioes not exceed twenty rupees Hflaan J 9' Ufltfl/J 9 Exceeds twenty rupees And F0fiy:efe?ii'_iiz;§e.es Provided aiso "re.sp'ect.;«of theatres paying tax in the mxzmieiee.speZ:{fie£is-...i?ii1.e_' Section 4--A, the tax payo.ble.V_under'_3 stgba ' section in respect of' cinematogrnpfi of' oz Kannada, Kodava, Konkani or T'u_lu-film shall be at the following rates, «-
Sl.
No. ofcz person to the " V 5 ;
glass ofsedt ' ' " V. Total payment od12{i£3s'iofa x e -- I1Raze oftax per show Does. no'? eighth T7'u'rteen rupees ct.
b.
V .. riofIexeee§fifteen..mpee.s megegggg but Twentyfive rupees Thirtyeght rupees c.
28. In so has the Act is concerned, while Section _ 3 is section applicable in ge1;1efa1,. is the nature of an exemption part of the chargng section. g_§ect_ion iiseli-f not create any class of distinction. ' section applicable to all classes of are liable under this provision. In so far 3-C is concerned, it is not actually part of h nlannuu u. _-- ....- _.. __ . wvuuu vs l\r'|EuVu"'IH'\i'\.l"'| nlufi LUU 43 Section 3, as is sought to be projected on of the petitioners. An exemption cannot be read...to"paFt of the changing section. Section 3--C'. either a proviso or as an appendeige T i'i;I%1e*-.. u Act. While it is not in douVht_t11at« is merely in the nature does not get immunity from. oiiufldisciiiniiiation frowned upon by of India, the scrutiny" e_xai.?ni:jeition for Getennination as to the extent of an act xlevy of tax at a different rateivoni ct ented by the charging section and classifying persons is not for an act of discrimination whenthe statiei *antin an exem tion or concession. 29, wmééiigé of the learned Advocate General concession is extended in respect of Kannada, Tulu or Banjara films in this manner the provisions of the Act can be a relevant er ' VXVIVNHWV -If'! l!fl"'l!"!"\ |_l£'\u_x wuuxun rmu" -4'- .m;:-_._ .
.. _ . ... -.-. u--.u---:u-1 I u\.7rI \¢\l|Jl(I UP' RMKNAEIAKA H16" 45
challenge to the provisions of Section SC on the of um;-onstitutionality therefore fails and is
30. In the result, these writ J extent indicated above.
to the limited extexiig as above' of the provisos of Section 4 of above.
31. In the the prayer for refund gar esoiisidemtiml and it is * 4 . . ' Sd/--
Judge H'3iH__HV)!'VJ.VN8V)! :lO 12ifl03 H81]-I V)iV1\'IN)l\n! an nlnnn Lzcuu ..m.............. .- .