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2014 (7) TMI 741 - HC - VAT and Sales TaxValidity of amendments to rule 41G of the Karnataka Entertainments Tax Rules - Declaration of Notification dated November 8, 2006 as being arbitrary, discriminatory, illegal, ultra vires and without authority of law; to quash annexure D dated February 15, 2010 passed by the second respon dent authority - declaration of amendment of section 4D carried out by Karnataka Act No. 5 of 2005 denying, inter alia, the MSOs the right to seek compounding of tax under section 4D as arbitrary, unreasonable and violative of articles 14, 19(1) (g) and article 300A of the Constitution and also to declare rule 41G as unconstitutional, illegal, without authority of law and having no rationale or nexus to the Scheme and scope of sections 4D and 4E of the Karnataka Entertainments Tax Act, by virtue of amend ment by Karnataka Act No. 5 of 2006 - Distinction between Sections 4C, 4D and 18(3A) of the KET Act - Held that:- The distinction made is only to see that large number of operators would pay based on the number of connections and giving a sort of concession to small operators asking them to pay composition tax at the fixed rate for various places in the State of Karnataka. In any way, this fixation of the slab at different places in respect of small-scale operators who have less than 500 connections is to encourage the trade/profession among the small cable operators. So far as multi-system operators are concerned, as their area of operation is big and they earn more income, it has decided to impose tax based on the number of connections at the rate of ₹ 15 or ₹ 20 per connection if the number of connections is more than 500 depending upon the area, which cannot be said to be arbitrary or illegal or in violation of article 14 of the Constitution. In that view of the matter, the challenge made to the amendment brought into the Act and Rules are not maintainable. - Decided against Petitioner.
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