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2014 (7) TMI 492 - HC - VAT and Sales TaxUnauthorise realization of taxes by the petitioner from the cinema goers - scheme of exemption versus scheme of grant-in-aid - contravention of the scheme in Government Order dated August 11, 2000 - Held that:- There was a complete departure in the new scheme provided in the Government Order dated August 11, 2000. The State Government, instead of allowing the cinema owners to charge the entertainment tax from the viewers, and keep it as "grant-in-aid" for compensating the cost of constructions of the cinema hall, provided an exemption under section 11(2) of the Act, in the new scheme vide Government Order dated August 11, 2000, and in which there is no mention of the word "grant-in-aid". The earlier schemes, under the Government Orders dated November 9, 1994 and December 7, 1998, were not for the benefit of the cinema goers; whereas the new scheme was framed for the benefit of the cinema goers, situate in a thinly populated area. The scheme was applicable to those areas, which has less than one lac population in accordance with census of 1991. Only new permanent cinema halls were provided with 100 per cent. exemption from paying entertainment tax for a period of five years. The cinema halls in the areas with population of more than one lac were provided with 100 per cent. exemption for a period of three years and thereafter with 50 per cent. exemption for the next two years. Clause 4 of the Government Order dated August 11, 2000 provided that those cinema halls, who are exempt from paying entertainment tax will not be allowed to realize extra charge for maintenance. There is nothing in the order of the District Magistrate dated September 10, 2001, which can be read or construed to permit the petitioner to charge entertainment tax from the cinema viewers, and keep it with her, after getting exemption under section 11(2) of the Act. The order only provided for exemption with the condition that in form B the collection from the viewers in respect of ticket charge, and the entertainment tax will be shown separately. The condition of showing entertain tax separately is for the statistical purpose, for the assessment of scheme. It cannot be treated to have allowed the petitioner to collect entertainment tax, and keep it by way of incentive. - in pursuance to the order passed by this court dated December 8, 2009, which was not stayed by the Supreme Court, the entertainment tax, which was illegally collected and not deposited in the State Treasury, has been realized from the petitioner - Decided against assessee.
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