TMI Blog1986 (11) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... of such reduction in the gross collection capacity till the end of the financial year during which the agreement is valid, a reduction in tax in proportion to the reduction in the gross collection capacity of the theatre. We will state the facts in W.P. No. 15992 of 1986 for understanding the nature of the question of law raised; the petitioner, who had opted for paying entertainment tax in respect of his theatre under section 5 of the Act, agreed to pay for the year 1984-85 at the rate of Rs. 6,634 per week calculated at 18 per cent multiplied by 21 shows on gross collection capacity of Rs. 1,755. While so, on 17th November, 1984 the petitioner made an application to the joint Collector, who is a licensing authority, for reducing the wee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gross collection capacity of the place of entertainment either by virtue of any modification or revision of the rate or rates of admission or any change in the accommodation or class or classes of accommodation as approved by the competent authority not less than fifteen days prior to such change. Where the rates of admission are modified or revised the tickets bearing the modified or revised rates shall not be issued until they are intimated in writing to the Entertainment Tax Officers. The tax as per the revised or modified gross collection capacity shall be payable for the shows held thereafter." It was also submitted by him that but for the fact that rule 27(10) contemplated reduction of tax on reduction of the seating capacity, and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was contended on behalf of the State that inasmuch as section 5 of the Act provides a procedure for the benefit of the tax-payer, he could not be heard to say that once he had entered into an agreement to pay a certain fixed amount per week, he was not liable to pay at that rate throughout the currency of the agreement. It is necessary for us in this context, to know the provisions contained in sub-sections (1), (2) and (6) of section 5 which read as follows: "(1) In lieu of the tax payable under section 4, in the case of the entertainments held in the theatres specified in column (2) of the table and located in the local areas specified in the corresponding entry in column (1) of the said table, the proprietor thereof may at his option a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so submitted that under sub-section (6) of the section only an upward revision of the tax, on increase of the gross collection capacity, alone is contemplated; and that there was total absence of any provision for reducing the tax corresponding to the reduction in the seating capacity during the period of the agreement. Our attention was also drawn to the judgment dated 19th July, 1984 in W.P. No. 6404 of 1984 and batch. A Division Bench, of which one of us (Anjaneyulu, J., was a party), upheld the constitutional validity of section 5 which did make provision for upward revision under sub-section (6) thereof, without any provision having been made to reduce the tax where there was a fall in gross income capacity due to the reduction in seat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng upon the reduction in the gross income capacity, and so long it does not run counter to any statutory provision or any rule made thereunder, it would be within the right of the rule-making authority to make such a provision. The rule-making authority, for giving effect to the intention of the legislature, having framed the rules, the Government cannot be heard to say that the rules are ultra vires the section, and that they would not be bound by the rules. The rules are not ultra vires section 5; nor can the Government put forward a plea that they would not be bound by executive orders or rules made for effectuating the intention of the legislature where there is no other provision made for that purpose. Of course, in the absence of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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