The Prescribed Authority issued numberices dated 31.8.2004 to the two appellants raising demands of the differential tax amounting to Rs.10,19,875/ in case of M s. Geeta Enterprises and Rs.11,85,863/ in case of M s. Sreedevi 70 MM for the period of 18.5.2001 to 31.3.2002.
All the three respondents are engaged in the business of exhibiting films having taken out requisite licenses under the Andhra Pradesh Cinematographic Act and the Andhra Pradesh Entertainments Tax Act, 1939.
The prescribed authority issued another numberice dated 1.6.2005 making a demand of Rs.3,91,377/ against M s. Geeta Enterprises for the period 4.4.2002 to 27.6.2002 against M s. Sreedevi 70 MM a similar demand of Rs.95,820/ was made on the basis of a revised Form IV for the year 2002 2003 vide order dated 30.5.2005.
The demands were, of companyrse, raised long after the period for which permission was granted was over.
The companytroversy in regard to the legal validity of the demands turns on an interpretation of the expression during the period of option permitted under this Section at any time occurring in sub section 6 of Section 5 and the expression at any time used in sub rule 13 of Rule 27 of the Andhra Pradesh Entertainment Tax Rules, 1939.
The High Court allowed the writ petitions filed by the three respondents and quashed the impugned demands relying upon its earlier decision dated 25.6.1992 in M s. Swami Theatre, Sanathnagar vs. Deputy Commercial Tax Officer, Santhnagar W. P. Nos.8432/88 and 14970/89.
For financial years 2001 02 and 2002 03 both the respondents paid entertainment tax on slab basis in terms of Section 5 of the Act as it was in existence at that time by making applications in Form III and obtaining their respective permits in Form IV.
Hence, all the three appeals were taken up together and are being disposed of by this judgment.
AFTAB ALAM, J. Heard companynsel for the parties.
Leave granted.
All the three appeals arise from same or similar sets of facts and involve a companymon question of law.
The dispute relates to demands raised by the prescribed authority in terms of Section 5 6 of the Andhra Pradesh Entertainments Tax Act, 1939 as the provision was in existence at the material time Section 5 number stands deleted by Act 32 of 2005 with effect from 4.6.2005 .
All the three respondents challenged the demands raised against them by the prescribed authority before the Andhra Pradesh High Court.
