Calling in question the orders passed by the State Government through their Memo dated 26.4.2006, the present writ petition has been instituted by the writ petitioner company.

2. The writ petitioner company was selected for setting up IMAX theatre with multiplex and entertainment complex on land of little over two acres belonging to the State, which has agreed to lease out for a period of 33 years subject to the condition of payment of 5% of the market value of the land as lease amount. The petitioner company was required to establish an IMAX theatre and a multiplex with at least four screens and the important factor for the State Government seeking to establish this entertainment project on it's site is that r it will be sharing the revenue with• the petitioner company at the rate of 15% of gross receipts or Rs.2.5 1akhs per month whichever is higher. It has passed orders through its G.O. Ms. No.553, Revenue Department, dated 29.4.2003 granting exemption from entertainment tax for a q period of five years commencing from 23.7.2003 to 22.7.2008. It had also granted exemption from operation of the classification of the seating arrangement and the pricing of admission. Accordingly, the petitioner has established the Entertainment Complex and obtained the licence in ) Form B in terms of Rule 11-B of A.P. Cinemas (Regulation) Rules, 1970 from the Commissioner of Police, Hyderabad. The maximum admissible rate was fixed at Rs.60/-. In accordance with G.O. Ms. No.538, Home Department dated 11.7.1994, the fixation of admission rate for the higher classes was left to the discretion of the managements while in respect of the lowest class in the theatre the rates prescribed by the Government had to be adopted and followed. In other words, the scheme allowed the management of the theatres to have necessary flexibility to adopt the admission rates for higher classes while at the same time the State had retained control over admission to the lowest class. However, in view of the exemption granted in favour of the petitioner company from the operation of this scheme of varying rates of admission, the petitioner company was applying only a uniform rate of admission. In terms of Para (4) of G.O. Ms. No.538, any licensee who intends to enhance the rates of admission for higher classes is required to make an application to the Licensing Authorities concerned along with the licence granted in Form B for making necessary endorsement thereon, which the licencing authority is required to make within a period of two weeks from the date of receipt of such an application. To ensure that the managements do not keep varying the rates of admission too frequently, the State Government had decided through G.O. Ms. No.308, Home Department, dated 11.11.1997 that the exhibitor be permitted to come up before the licensing authority with a request for enhancing the rates of admission only after expiry of a period of six months after the preceding enhancement was granted. Since the rate of admission has been uniform insofar as the petitioner is concerned, the petitioner submitted an application seeking enhancement of the rate of admission from Rs.60/- to Rs.80/- from 12.10.2004. The 1st respondent considered this request and rejected it by order dated 8.11.2004. On 10.11.2004, the petitioner again pleaded that the enhanced rate of admission is warranted though there is only one uniform and single rate of admission in the petitioner's theatre. That was once again considered and rejected on 23.11.2004. An appeal has been preferred against the decision declining to enhance rate of admission on 3.3.2005. That appeal was considered by the State Government and through their orders in G.O. Rt. No.19l0, Home Department, dated 14.1.2006 permitted the petitioner to enhance the rate of admission from Rs.60/- to Rs.80/-, subject to the conditions stipulated therein.

3. However, it will be relevant to notice, that the State Government issued orders through their G.O. Ms