No different rates of entertainment tax on language basis:SC

By Staff
|
Google Oneindia News

New Delhi, June 4 (UNI) The Supreme Court has held that different rates of entertainment tax on films cannot be imposed on the basis of difference in language alone.

The petitioner, Ashirwad Films, had approached the apex court under Article 32 of the Constitution challenging the validity of Andhra Pradesh Entertainment Tax Act 1939 under which the rate of entertainment tax on Telugu films was fixed at 10 per cent while on non-Telugu films it was 24 per cent. The apex court also imposed a cost of Rs 50,000 on the state of Andhra Pradesh.

Representations to withdraw the tax were rejected by Andhra Pradesh Government.

According to the petitioner, discrimination on the basis of the language violates right to equality guaranteed under Article 14 of the Constitution.

The state government, however opposed the petition on the grounds that the state government enjoyed great latitude in the field of imposition of entertainment tax.

A bench comprising Justices S B Sinha and Markandey Katju while holding the imposition of different taxes on the basis of the language of the movie as unconstitutional observed ''We furthermore may take judicial notice of the fact and keeping in view that this case was tagged with other matter where it had been brought to our notice that some states have been making hostile discriminations at the instance of the distributor of the films produced in local languages. State of Anadhra Pradesh imposed the said tax on the said basis which is per se discriminatory in nature. We are therefore of the opinion that the impugned levy cannot be sustained being discriminatory in nature.It is struck down accordingly.

Petitioner would thus be bound to pay tax at the rate at which entertainment tax has been levied in respect of Telugu films. The writ petition is allowed with costs.

Counsel fees assessed at Rs 50,000.'' The court also noted ''The purported classification only on the basis of language without anything more and in particular having regard to the difference in the rate of tax in our opinion is ex-facie arbitrary. The burden was therefore on the state to show that the imposition was justified. Different rates of entertainment tax had not been levied having regard to the nature of the theatre, the area where they were situtated or extent of occupancy etc. It has not been explained as to whether cinema theatre exhibiting Telugu film suffer from any disadvantage which others had not been. It has not been shown as to why the same theatre where films in different languages are exhibited would be a class apart only because at different times exhibit films produced in different languages. Moreover how Telugu films have been treated as a separate class have not been stated. Although the legislature enjoyed a greater freedom and latitude in choosing person upon whom and suggest upon which it can levy tax, it is trite that taxing legislations are not immune from attack based on Article 14. It is also not the case of the respondent state that in imposing different rates of tax they intend to achieve and avowed object envisaged under Part 4 of the Constitution of India. '' UNI

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X