JUDGMENT :

R.F. Nariman, J.

Leave granted.

2. The present appeals arise from a batch of judgments dealing with cases which come from Maharashtra and West Bengal. Insofar as the civil appeals relating to Maharashtra are concerned, the subsidy scheme of the State Government took the form of an exemption of entertainment duty in Multiplex Theatre Complexes newly set up, for a period of three years, and thereafter payment of entertainment duty @ 25% for the subsequent two years. The object of introducing the necessary amendments in the Bombay Entertainments Duty Act to effectuate the aforesaid subsidy scheme was first done by way of an ordinance before 4th December, 2001, which ultimately became part of an Amendment Act. The statement of objects and reasons for introducing the aforesaid scheme reads as follows:

“1. As a result of the onslaught of Cable Television and advancement in the field of Information Technology, the average occupancy in cinema theatres has fallen considerably and hardly any new theatres have been started in the recent past. Public at large these days prefer to see movies at home. Keeping in view this scenario, a concept of Complete Family Entertainment Centre, more popularly known as “Multiplex Theatre Complex” has emerged. These Multiplex Theatre Complexes offer various entertainment facilities for the entire family under a single roof. However, these complexes are highly capital intensive, their gestation period is also quite long, and therefore, need Government support and incentive in entertainment duty.

2. Government has, therefore, with a view to commemorate birth centenary of Chitrapati late Shri V.Shantaram, decided to grant concession in entertainment duty to Multiplex Theatre Complexes to promote construction of new cinema houses in the State.

3. In accordance with the above decision, Bombay Entertainments Duty Act, 1923 was modified as required and Bombay Entertainment Duty (Revised) Act, 2001 (Government Order: ENT-1099/C.R.765/T-1) was brought into force on 17th August, 2001.”

3. The said scheme was thereafter set out in the form of an amendment to the Statute contained in Section 3(13) sub-clause (c) after which a new sub-clause f(1) was set out which reads as follows:

“(f-1) “Multiplex Theatre Complex” means an entertainment cum-cultural centre which provides-

(i) within the limits of Municipal Corporation of Brihan Mumbai not less than four theatres in a complex with minimum total seating capacity of 1,250; and

(ii) any where else in the State, not less than three theatres in a complex with minimum total seating capacity of 1,000.

And such other incidental and connected matters and facilities, and multi entertainment activities and other facilities as specified by Government in this behalf, by Notification in the official Gazette;”

4. In addition, a new sub-clause (13) was also inserted after Section 3 which reads as follows:

“13. (a) Notwithstanding anything contained in any other provisions of this Act, but subject to the terms and conditions specified in clause (b), on and with effect from the date of coming into force of the Bombay Entertainments Duty (Amendment) Act, 2001, there shall be levied and collected by the State Government from the proprietor of a Multiplex Theatre Complex the duty in respect of any such complex as follows, namely:-

(i) for the first three years from the date of commencement of the Multiplex Theatre complex, no duty.

(ii) for the subsequent two years, at the rate of twenty five percent of the rate of duty leviable under clause (b) and clause (c) of sub-section (1) or, as the case may be, sub section (3);

(iii) from the sixth year, full amount of duty leviable at the rate specified in clause (b) and clause (c) of sub-section (1) or, as the case may be sub-Section (3).

Provided that, the duty leviable shall also be subject to the provisions of sub-section (2), wherever applicable

Explanation-For the purpose of this sub-section:

(i) the date on which the Multiplex Theatre complex is