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1992 (8) TMI 243 - SC - VAT and Sales TaxImposition of "theatre tax" by the Nagar Mahapalika, Lucknow challenged by the cinema owners/lessees in these petitions under article 32 of the Constitution of India. Held that:- Appeal dismissed. The theatre tax is levied as a tax on amusement and entertainment. The amusement in a building is affected by all those factors which are taken into consideration while fixing the annual rental value of the building. Higher rental value in relation to a cinema house shows that it has better accommodation, better situation and better facilities for amusement and entertainment. The higher annual value is indicative of a better quality cinema house as compared to a cinema house which has a lesser annual rental value. We are, therefore, of the view that there is nothing unreasonable or improper in classifying the cinema houses on the basis of annual rental value. The learned counsel for the petitioners has not raised any other point before us.
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