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2016 (4) TMI 679 - MADRAS HIGH COURT

2016 (4) TMI 679 - MADRAS HIGH COURT - TMI - Seeking direction to grant entertainment tax exemption to the movie - After rejection of the application for grant of exemption of entertainment tax, now, by the new Government Order issued on 31.03.2016, the first respondent had taken a different stand stating that the petitioner's movie is entitled for exemption of entertainment tax only from the date of issuance of the Government Order i.e., 31.03.2016.

Held that:- when the petitioner ha .....

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ie and not from the date of issuance of the Government Order. The Order passed by the first respondent dated 31.12.2015 is proved to be erroneous, by the issuance of the present Government Order dated 31.03.2016.

By following the judgment of Hon'ble Supreme Court in the case of Lloyd Electric and Engineering Limited vs State of Himachal Pradesh and Others [2015 (9) TMI 370 - SUPREME COURT], order passed by the first respondent, is liable to be set aside. The petitioner's tamil movie .....

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d respondent in proceedings No.Sa.Ku-4/569/2012 dated 9.1.2012 and of the first respondent in G.O.(D) No.529 dated 31.12.2015, quash the same and consequently direct the respondents to grant entertainment tax exemption to the movie "g[fH;", co-produced by the petitioner. 2. Pursuant to the Government Order (Standing) No.72, issued by the first respondent, granting entertainment tax exemption, Government Order (Standing) No.89, issued by the first respondent, laying down the condition f .....

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the second respondent, from the list of 22 names, mentioned in the Government Order, along with two official members, viewed the film and out of the six members, three members have given their recommendation in favour of granting exemption of entertainment tax and three members have given their opinion against the exemption of entertainment tax for the Tamil Movie "g[fH;". 4. Based on the Circular dated 09.01.2012, since the members are equally divided with regard to the grant of exem .....

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the matter came up for hearing on 16.03.2016, Mr.R. Muthukumarasamy, learned Senior Counsel, appearing for the petitiioner, submitted that the moive is scheduled to be released on 18.03.2016 and therefore, in the interest of justice, the respondents may be directed to constitute a fresh committe for viewing the movie and give their opinion to the respondents and based on the opinion of the Committee, the issue of exemption to the movie can be decided. 7. Since there are 22 members in the Viewin .....

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d all the members have given their individual recommendation, for the grant of the exemption of entertainment tax to the movie. The respondents also filed a report to that effect before this court which was also taken on record. Since the five members Viewing Committee had given an unanimous report, stating that the petitioner's movie "g[fH;" is entitled for exemption for entertainment tax, this Court directed the respondents to process the application, submitted by the petitioner, .....

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ents have to send a letter to the Election Commission of India for getting its approval. Further, it was represented that the respondents are expecting the approval from the Election Commission by the end of the said week. In view of the submissions, made by the learned Additional Government Pleader, the matter was adjourned to today i.e., 01.04.2016. 10. When the matter was taken up for hearing today, Mr.S. Kanmani Annamalai, learned Additional Government Pleader, appearing for the respondents, .....

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n to grant exemption, they cannot restrict the exemption by granting the same from the date of issuance of the Government Order and that the exemption should be granted from the date of release of the movie. 12. The learned Senior Counsel, in support of his contention, relied upon the judgment reported in 2016 (1) SCC 560 (Lloyd Electric and Engineering Limited vs State of Himachal Pradesh and Others), wherein the Hon'ble Supreme Court held as follows: 14. The State Government cannot speak i .....

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It has only one policy. The departments are to implement the government policy and not their own policy. Once the Council of Ministers has taken a decision to extend the 2004 Industrial Policy and extend tax concession beyond 31-3-2009, merely because the Excise and Taxation Department took some time to issue the notification, it cannot be held that the eligible units are not entitled to the concession till the Department issued the notification. 15. It has to be noted that the Finance Departmen .....

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e held that the State Government can levy the tax against its own policy. The State Government is bound by the policy decision taken by the Council of Ministers and duly notified by the Department concerned viz. Department of Industries. 16. That apart, it appears, the Excise and Taxation Department itself has not actually intended the notification to take effect from 18-6-2009. The definition given to the new and the existing industrial units in the Notification dated 18-6-2009 would indicate s .....

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commenced production before 31-12-2004;" 17. Even otherwise, it is not altogether a new concession that has been notified by the Excise and Taxation Department in the impugned Notification dated 18-6-2009. As we have noted above, it is an extension of the 2004 Industrial Policy and the resultant tax concession to the eligible units which was available up to 31-3-2009. Therefore, for all purposes, what is notified by the Excise and Taxation Department on 18-6-2009 is an extension of the sai .....

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nging the said order, the petitioner has filed the writ petition on 07.03.2016. As already stated, the movie was scheduled to be released on 18.03.2016 and it was represented by the learned Senior Counsel that the movie was also released on 18.03.2016. 14. After the rejection of the application for grant of exemption of entertainment tax, by its order dated 31.12.2015, now, by the new Government Order issued on 31.03.2016, the first respondent had taken a different stand stating that the petitio .....

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