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2015 (10) TMI 2602 - HC - VAT and Sales TaxEntertainment tax u/s 4 of the Tamil Nadu Entertainment Tax Act, 1939 - the benefit of exemption from the entertainment tax is not being passed on to the viewers and the Theatre owners collect huge sums and appropriate themselves - whether the benefit of exemption is to be passed on to the viewers or not? Held that: - the grant of exemption has devolved from mere title to the development of Tamil Language and culture. It also limits use of other languages, violence and obscenities. It is also to be noted that the exemption is granted only to the films and all the conditions are imposed keeping the viewers in mind - The duties of the theatre owners are only to display, whereas it requires certain actions from the film makers to comply with the conditions - The purpose of the exemption, as this court has already pointed out, is mainly to develop and promote Tamil Culture. The object can only mean that by viewing the movies, which comply with the conditions, the viewers would develop further liking towards the Tamil language and Culture. Therefore, it can be safely said that the exemptions are to woo more viewers and therefore, the benefit of an exemption is only for the viewers, who bare the tax burden. An exemption is not a right. It is only a grant. The authority, granting the same, has powers to impose any conditions. Section 8 of the Act has to be read along with Section 4 of the Act and the provisions of the TNCR Act. Unjust enrichment - Held that: - the collection and retention of tax against the provisions of law is unjustifiable and would amount to unjust enrichment. As evident from the various cases relied upon by the learned senior counsel for the Petitioner above, once it is found that the tax is collected against the statute, the same is liable to be refunded. Any levy of tax or any amount in the like nature would be amenable to Article 265 of the Constitution of India. Further, the Government issued orders in GO.Ms.No.159, Commercial Taxes and Registration (C1) Department, dated 22.08.2007, restricting the concession not to those old or new Tamil films bearing Tamil titles, but only to those conforming with Tamil culture and dignity, that is the movies not having, violence and adult only scenes were only granted exemptions. The exemption benefit must be passed on to the viewers, as the burden falls on them - the tax burden should not be passed on to the viewers by the theatre owners in cases of exemption from the levy of entertainment tax - petition allowed - decided in favor of petitioner.
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