JUDGMENT

R.C. Lahoti, J.-This order shall govern the disposal of a bunch of appeals grouped into three and arising in the backdrop of events stated hereinafter.

2. The Uttar Pradesh Entertainments and Betting Tax Act, 1979 (U.P. Act No. 28 of 1979) was enacted and came into force in the State of U.P. on August 16, 1981. It introduced the levy of the entertainment tax payable at a certain percentage on all payments for admission to any entertainment. Entertainment as defined in the interpretation clause includes cinematograph exhibitions amongst others. With a view to encouraging cinema construction the State of Uttar Pradesh extended a scheme of grant-in-aid for permanent cinema houses constructed within a specified period through a Government Order dated 17th September, 1983. Permanent cinema houses constructed under the scheme depending on the population of the areas/towns wherein they were constructed were allowed grant-in-aid equivalent to 100%, 75%, 50% respectively for the first, second and third year of construction in the areas/places having the population of more than 20,000 but less than 1,00,000. In the areas/places having population of less than 20,000 the amount of gra