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2014 (12) TMI 1389 - SUPREME COURTLiability for license and deposit license fee and other taxes - Uttar Pradesh Cinemas (Regulation) Act, 1955 - N/N. 145/XXVII (5) Entertainment Tax/2005 dated 17.8.2005 - HELD THAT:- In pursuance of Section 21 of the Cable Television Network Act, 1995, the provisions of the Cinematograph Act, including the programme code, are fully applicable to the Cable operator. The Respondent got himself registered Under Section 3 by depositing ₹ 500/- as registration fee. The Respondent wants to run two private channels subscribing to 11,885 TV screens. The respondent is covered Under Section 2(aa) of the U.P. Cinema Rules, 1988 and is liable to pay fee under Rule 17. By conduct the Respondent accepted the Rules, as he submitted an undertaking before the Court to comply with the Rules. He also deposited a license fee of ₹ 2400/- per year as imposed under Rule 17(1). The Respondent cannot choose and be selective as to which Rules will be applicable to him. The Respondent has also given an undertaking to comply with Rules 17(1) and 17(2). This Court in M/S. LAXMI VIDEO THEATERS VERSUS STATE OF HARYANA AND OTHERS [1993 (7) TMI 339 - SUPREME COURT], while considering the expression "Cinematograph" under the Cinematograph Act, 1952 and its applicability on VCR and VCP which was developed in 1970, held that a definition must be given a meaning which takes into account the subsequent scientific developments in the field. The Notification No. 145/XXVII (5) Entertainment Tax/2005 dated 17.8.2005 doesn't apply to the Respondent as it seeks to tax "Exhibition by means of Video". The Respondent's activities are not covered by the aforementioned expression - As long as there is no statutory sanction for imposition of a tax, no liability of paying a fee can be imposed relying on the alleged "consent" or acquiescence to the same imposition in part. The statutory sanction cannot be found under the Uttar Pradesh Entertainment and Betting Tax Act, 1979 or any rules made thereunder. From a plain reading of the relevant provisions it is clear that the same are not applicable to the Respondent and hence the demand as well as the Recovery Certificate dated 6.8.2011 issued under Rule 17(2) of the Rules are bad in law - appeal dismissed.
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