Judgment

R.M. SAHAI, J.

(1) WHETHER the notification issued on 31/03/1984 by the government of West Bengal, in exercise of power conferred under section 8 of the Bengal Amusements Tax Act, 1922 (Bengal Act V of 1922 (hereinafter referred to as the Act) as amended in 1981, exempting any performance organised by a bona fide group theatre, amateur theatre or amateur jatra, formed exclusively for purposes of cultural activities and not for monetary gains, by engaging artistes who are not paid any regular or contractual fees from payment of entertainment tax was beyond the power to grant exemption for social, educational and scientific purpose, thus violative of Article 14 of the Constitution is the question which arises for consideration in this appeal filed by the State of West Bengal against the judgment and order of a division bench of the Calcutta High court.

(2) SECTION 8 of the Act prior to its amendment read as under:

"8. Exemptions. (1) The entertainments tax (and the show tax) shall not be charged on payments for admission to any entertainment where the State government is satisfied

(A) that the whole of the takings thereof are devoted to philanthropic, religious or charitable purposes without any charge on the takings for any expenses of the entertainment; or

(B) that the entertainment is of a wholly educational character (any question on that point to be determined in the case of difference by the State government in the department of education); or

(C) that the entertainment is provided for partly educational or partly scientific purposes by a society, not conducted or established for profit; or

(D) that the entertainment is provided by a society which is established solely for the purpose of promoting the interest of the industry of agriculture, or the manufacturing industry, or some branch thereof, or the public health, and which is not conducted for profit, and consists solely of an exhibition of the products of the industry, or branch thereof, for promoting the interests of which the society exists or of materials, machinery, appliances, or foodstuffs, used in the production of those products, or of articles which are of material interest in connection with the questions relating to the public health, as the case may be.

(2 The State government may, by general or special order, exempt any entertainment or class of entertainments from liability to the entertainments tax (and the show tax)."

The State government in 1975 issued a notification under Section 8(2 of the Act exempting, from the liability of entertainment tax, dramatic performance including Jatra by professional or other organisations subject to the condition that the exemption was not available if the same was being exhibited directly or indirectly as Cabre (sic cabaret). In 1977 the notification issued in 1975 was amended and it was provided that entertainment tax was chargeable and leviable where the admission fee exceeded Rs. 15.00. These notifications were amended twice in March and October 1979 reducing the limit of the amount on which the tax was chargeable. From 1977 onwards, therefore, there was a partial exemption related to rate of admission fee. In 1981 Section 8 of the Act was substituted by the West Bengal Taxation Laws Amendment Act and the substituted section reads as under:

"8. Exemptions. The State government may, for social, educational or scientific purposes, by general or special order, exempt fully or partly the entertainments tax, show tax, surcharge or additional surcharge payable under this Act for any entertainment or class of entertainments, subject to such conditions as may be laid down in such order."

In March 1984 the impugned notification was issued:

"IN exercise of the power conferred by Section 8 of the Bengal Amusements Tax Act, 1922 (Bengal Act V of 1922, the governor is pleased hereby to rescind, with effect from the 1st day of April, 1984, this Department order Nos. 1