TMI Blog1997 (10) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... y 23, 1981 refixing the amount of tax payable under section 5(1) of the Andhra Pradesh Entertainments Tax Act, 1939 (for short, the Act ). The liability of the petitioner was fixed under section 5(1) of the Act for the period from June 26, 1980 to June 25, 1981 at Rs. 720.43 per week. The petitioner reported variation in the gross collection capacity consequent upon reduction in the seating capacity and because of upward revision of rates of admission which are said to have been approved by the Joint Collector, Ongole, the licensing authority. So far as the seating capacity is concerned, the Commercial Tax Officer took the view that the reduction in the seating capacity cannot be taken note of but fixed the gross collection capacity taking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be no upward revision consequent upon the reduction either in the seating capacity or in the rate of admission, therefore the Commercial Tax Officer was right in ignoring the reduction in the seating capacity but applying the enhanced rates of admission to the original number of seats. 7.. The short question that arises for consideration in the writ petition is: How the gross collection capacity should be calculated in the case of upward revision in the gross collection capacity when the number of seats are reduced but the rates of payment for admission have been enhanced? 8.. The expression gross collection capacity for the purposes of section 5 of the Act is defined in the explanation to section 4-C of the Act and it reads as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Officer of the change in the gross collection capacity of his place of entertainment by virtue of the upward revision of the rates of admission or additional accommodation as approved by the competent authority. On such intimation the Commercial Tax Officer has to vary the fixed sum and the agreements for payment of fixed sums should be modified which should be in force for the remaining period of the original agreement. 10.. Now referring to the explanation to section 5, it may be noted that the gross collection capacity has to be computed for each show in respect of any place of entertainment in existence before April 1, 1976. For that purpose the seating capacity or the accommodation and the maximum rate of payment for admission h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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