The main legal point established in the judgment is that while the Municipal Corporation has the power to impose tax on theaters and shows for public amusement, prior approval from the State Government is necessary for enhancing the tax beyond the prescribed limit.

Heard.

1. Petitioner has filed this petition against the order dated 17-10-2011 (Annexure P-l), passed by the Commissioner, Municipal Corporation, Gwalior.

2. Petitioner is a Private Limited Company, named as 'Fun Multiplex Pvt. Ltd., Deendayal Mall, Gwalior'. It had constructed a Multiplex Cinema Hall in Deendayal Mall, Gwalior. It was granted a licence under the provisions of the M. P. Cinemas (Regulation) Rules, 1972 on 14th August, 2008 by the District Magistrate, Gwalior. The petitioner has been paying a show tax at the rate of Rs. 50/- per show for per screen imposed by the Municipal Corporation. Thereafter, vide impugned order dated 17-10-2011 the Corporation had increased the show tax from Rs. 50/- to Rs. 500/- per show per screen, which is under challenge in this petition.

3. The Municipal Corporation in its reply contended that Municipal Corporation has power and authority to enhance tax on theatres, theatrical performances and other shows of public amusement under Section 132 (6) (m) of the Municipal Corporation Act, 1956, herein after referred to as the 'Act of 1956'. Hence, the Corporation has imposed the tax and also enhanced the tax.

4. Learned Counsel for the petitioner has contended that exhibition of movies in a cinema theater does not fall under the provisions of Section 132 (6) (m) of the Act of 1956, hence, the Corporation has no power and authority to impose the aforesaid tax. Learned Counsel further submitted that the tax can be enhanced with the previous sanction of the State Government and because no sanction had been taken by the Corporation to enhance the tax, hence, enhancement of tax at the rate of Rs. 500/- per show per screen is arbitrary and illegal.

5. Contrary to this, learned Deputy Advocate General, contended that the Municipal Corporation has power and authority to impose tax under Section 132 (6) (m) of the Act of 1956, and it has power to enhance the tax. No approval from the State Government is necessary for the aforesaid purpose, hence the order passed by the Corporation is in accordance with law. In support of his contentions, learned Counsel relied on the judgment of the Hon'ble Supreme Court in the case

of Western India Theatres Limited Vs. Cantonment Board, Poona, AIR 1956 SC 582.

6. Undisputed facts of the case are that earlier the Corporation imposed the show tax at the rate of Rs. 50/- per show per screen, which had been paid by the petitioner. Subsequently, the rate of show tax has been enhanced from Rs. 50/- to Rs. 500/-. Section 132 (6) of the Act of 1956 provides power to the Corporation to impose some more tax. Sub-section (m) of Section 132 (6) of the Act of 1956 gives power to impose tax on theaters, theatrical performances and other shows for public amusement. The relevant provisions are as under : -

"132. Taxes to be imposed under this Act.-

(1) *** *** ***

(6) In addition to the taxes specified in sub-section (1), the Corporation may, for the purpose of this act, subject to any general or special order which the State Government may make in this behalf, impose any of the following taxes, namely : -

(a) *** *** ***

(m) a tax on theatres, theatrical performances and other shows for public amusement. ' '

7. Earlier, the State Government had prescribed maximum limit of Rs. 200/- and Rs. 50/- per show per screen, which can be imposed by the Corporation under the show tax vide notification dated 24th June, 1998 issued under Section 132, sub-section (9) of the Act of 1956. The aforesaid section was omitted vide M.P. Act No. 29 of 2003. Prior to omission sub-section (9) was as under :-

"(9) The State Government may, by notification, in the Official Gazette, prescribe the maximum and minimum rate of any tax specified in this section, subject to which the Corporation shall determine the rate of such tax."

8. From perusal of sub-section (6) of Section 132 of the Act of 1956, it is clear that the Corporation can impose any tax mentioned in the aforesaid section subject to any general an