TMI Blog2014 (7) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... nections 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. - W.P. No. 14111 of 2010 - - - Dated:- 1-3-2013 - HULUVADI G. RAMESH, J. ORDER:- HULUVADI G. RAMESH J. The petitioners in these writ petitions have sought for issuance of a writ of certiorari to quash annexure F dated March 8, 2010 passed by the second respondent. Further they have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have to pay entertainment tax based on number of connections and those operators who have less than 500 connections are assessed under section 4D, which according to them is discriminatory and that the aforesaid amendment has been introduced only to harass the peti tioners and to extract more tax from the petitioners. It is also contended that as per the mandate, the respondent-authority has not placed the amendment to rule 41G before the Legislature, thereby there is violation of section 18(3)(a) of the KET Act and when a statute requires certain thing to be done in a certain manner, it shall be deemed to have been prohibited the doing of that thing in any other way. Further, it is submitted that earlier for the purpose of composition at least 500 connections were required which has been undone by the impugned amendment, which is arbitrary and the distinction made between small operators and multi-system operators is unreasonable and arbitrary. In this connection, reliance is placed on the decision of the Kerala High Court in the case of Asianet Satellite Communications Limited v. State of Kerala [2013] 57 VST 389 (Ker) and another decision reported in [2012] 343 ITR 316 (Orissa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of 2006 is illegal, discriminatory and violative of article 19(1)(g) of the Cons titution. According to the learned Additional Government Advocate section 4C is a charging provision and section 4D is only option and discretion given to the cable operators who have less than 500 connections. The said classifi cation is made to accommodate cable operators in the rural area and other places and submits that taking into consideration the cable operators who have less than 500 connections and depending upon the area of operation, certain amount has been fixed and option is given to adopt section 4C or section 4D depending upon the number of connections and also submitted that it is a reasonable classification so as to bring the cable operators under the entertainment tax net on uniform basis. If it is done in large scale, the connection has to be taxed based on individual connection in terms of section 4C and exemption and composition could only be exercised by those small operators who have less than 500 connections and therefore, this exemption cannot be held to be either discriminatory or arbitrary and it is done only to protect the interest of small operators. Further, the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etor being a direct-to-home service provider providing entertainment through antennae or cable televi sion directly to subscribers apart from providing satellite television signals under the direct-to-home scheme, shall be liable to pay tax under this section in addition to payment of any tax liability under section 4G. 4D. Composition of tax payable under section 4C. In lieu of the tax payable under section 4C (any proprietor other than a multi system operator or a direct-to-home service provider, may), at his option and subject to such condition and in such manner as may be prescribed pay a tax with respect to the entertainment provided at the places specified in column (2) of the table below at the rates specified in column (3) thereof. TABLE Sl. No. Places Amount of Tax 1. Bangalore City Municipal Corporation Rupees six thousand five hundred per month. 2. City Municipal Corporations (other than Bangalore City Municipal Corporation); and Cantonment Board Rupees Three thousand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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