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1958 Supreme(AP) 150
Andhra Pradesh High Court
Judges : N.KUMARAYYA, P.CHANDRA REDDY
T.Aswathanarayana - Appellant
Versus
State OF A.P. represented by Secretary, Commercial Taxes, Kurnool - Respondent
Decided On : 09-12-58
A State Legislature has the power to levy taxes on entertainments under Entry 62 of the State List in the 7th Schedule to the Constitution of India, and such taxes do not fall under Entry 60, which relates to taxes on professions, trades, callings, and employments.
Headnote:
Section 4-A of the Madras Entertainments Tax Act, 1939, which imposes a tax on cinematograph exhibitions, is constitutionally valid. The tax falls under Entry 62 of the State List in the 7th Schedule to the Constitution of India, which empowers State legislatures to levy taxes on entertainments, and not under Entry 60, which relates to taxes on professions, trades, callings, and employments.
Fact of the Case:
The petitioners, who are exhibitors of motion pictures in the State of Andhra Pradesh, challenged the constitutional validity of Section 4-A of the Madras Entertainments Tax Act, 1939, which imposed a tax on cinematograph exhibitions. They contended that the tax was ultra vires the powers of the State Legislature and that it violated Article 14 of the Constitution, which guarantees equality before the law and equal protection of the laws.
Finding of the Court:
The court held that Section 4-A of the Madras Entertainments Tax Act, 1939, was constitutionally valid. It found that the tax fell under Entry 62 of the State List in the 7th Schedule to the Constitution of India, which empowers State legislatures to levy taxes on entertainments, and not under Entry 60, which relates to taxes on professions, trades, callings, and employments. The court also held that the tax did not violate Article 14 of the Constitution, as it was based on a reasonable classification and did not discriminate against any particular group of people.
Issues: 1. Whether Section 4-A of the Madras Entertainments Tax Act, 1939, is constitutionally valid? 2. Whether the tax falls under Entry 62 of the State List in the 7th Schedule to the Constitution of India or under Entry 60? 3. Whether the tax violates Article 14 of the Constitution?
Ratio Decidendi: 1. The court held that Section 4-A of the Madras Entertainments Tax Act, 1939, is constitutionally valid. 2. The court found that the tax falls under Entry 62 of the State List in the 7th Schedule to the Constitution of India, which empowers State legislatures to levy taxes on entertainments, and not under Entry 60, which relates to taxes on professions, trades, callings, and employments. 3. The court also held that the tax does not violate Article 14 of the Constitution, as it is based on a reasonable classification and does not discriminate against any particular group of people.
Final Decision: The court dismissed all the petitions challenging the constitutional validity of Section 4-A of the Madras Entertainments Tax Act, 1939, with costs.
( 1 ) THE constitutional validity of Section 4-A of the Madras Entertainments Tax Act is put in issue in these writ petitions. The petitioners are exhibitors of Motion Pictures. They are either owners of theatre houses or lessees thereof in various parts of the State of Andhra Pradesh, The Government of Andhra Pradesh imposed a tax on each of the cinematograph exhibitions in the theatres, in exercise of the powers conferred on it by Section 4-A of the impugned legislation. The jurisdiction of this Court is invoked under Article 226 of the Constitution to strike down the offending section as being unconstitutional. It is contended that it was ultra vires the powers of the concerned legislature to have passed this measure.
( 2 ) BEFORE we deal with the various contentions advanced on behalf of the petitioners, it is useful to set out the terms of the offending section ; "4-A. (1) In the case of cinematograph exhibitions, in addition to the tax under Section 4, there shall be levied and paid to the State Government a tax calculated at the following rates, namely : (2) The tax levied under Sub-section (1) shall be recoverable from the proprietor. (3) The provisions of this Act other than Sections 4,6,7 and 13 shall, in so far as may be, apply in relation to the tax payable under Sub-section (1) as they apply in relation to the tax payable under Section 4"
( 3 ) FOR the first lime, the Provincial Legislature of Madras enacted the Madras Entertainment Tax Act in 1939, levying a tax on payment for admissions to entertainments. A provision permitting the levy of additional tax on cinematograph exhibitions was inserted in this statute by the Madras Entertainment Tax (Amendment), Act, 1949 (Act XVII of 1949 ). This Act was to be in force only for a period of one year from 1-8-1949 on which date it came into operation. Its life was extended from time to time till 1955 when the President of India enacted, by virtue of the powers conferred on him by Section 3 of the Andhra State Legislature (Delegation of Powers) Act, 1954, the Madras Entertainments Tax (Andhra Amendment) Act. 1955, extending for a further period of one year from 31-3-1955 the Madras Act XVII of 1949. Finally this was made a permanent legislative measure by the Andhra Re-enacting Act VI of 1956.
( 4 ) THE constitutionality of this provision ol law is attacked on the ground that this was beyond the legislative competence of the Slate Legislature. It was urged that no power was conferred on the State to make taxing laws in regard to cinematograph shows. This power is not included in the State List (List No. 2 of the 7th Schedule ). The problem thus posed has to be solved with reference to the relevant entries in list No. II which, enumerates the various subjects that are assigned to State legislatures under Article 246 of the Constitution. Item 62 gives exclusive power to the State legislature to make laws in regard to taxes on luxuries including taxes on entertainments, amusements, belting and gambling. Two other entries to which our attention was invited as having a bearing on the present enquiry are Items 33 and 60 of the same list. : "33. Theatres and dramatic performances; cinemas subject to the provisions of entry 60 of List I; sports, entertainments and amusements. " "60. Taxes on professions, trades, callings and employments. "
( 5 ) AN argument is pressed upon us that Section 4-A cannot be brought within the range of entry 62, since cinema shows cannot be described as entertainments within the meaning of this item. "entertainments" as contemplated by this entry are exclusive of exhibitions in cinema theatres and consequently Entry 62 does not authorise any levy on cinema shows. Support is sought for this proposition from the wording of entry 33 of the State List. The argument based upon this entry is that if cinematograph exhibitions could be brought within the content of "entertainments," it was needless for the Constitution-makers to have included
