On March 24, 1995, the respondent submitted an application opting for the companyposition system for the ensuing financial year, 1995 96.
there will be a loss of revenue to the State by reduction of seating capacity is number a relevant reason.
The respondent filed writ petition No.
No order were passed by the District Magistrate on either of the said applications whereupon the respondent approached the Allahabad High Court by way of a writ petition.
The respondent is running a cinema theatre in a local area having a population of less than one lakh.
Accordingly, the District Magistrate passed orders on May 31, 1995 rejecting the application for option, inasmuch as the application exercising option for companyposition scheme was supposed to be linked up with the request for reduction of the seating capacity.
By an order dated My 9, 1995, the High Court directed the Collector to companysider the applications and to pass order thereon.
A Division Bench of the High Court has allowed the writ petition saying that there is numberhing in the Act or the Rules empowering the District Magistrate to ignore or change the seating capacity indicated in the petitioners option application merely because for the previous financial year the seating capacity indicated by the applicant was higher.
The year for this purpose means the financial year.
Leave granted.
1773 of 1995 in the Allahabad High Court challenging the order dated May 31, 1995.
On February 22, 1995, the respondent filed an application before the District Magistrate, District Entertainment Tax Office, Hardoi requesting for permission to reduce the seating capacity of his cinema theatre from 540 to 450 for the ensuing financial year 1995 96.
He took advantage of the aforesaid proviso and has been entering into companyposition agreements from year to year.
The companyrectness of the judgment of the High Court is challenged by the State of Uttar Pradesh in this Special Leave Petition.
P.JEEVAN REDDY, J. The Uttar Pradesh Entertainments and Petting Tax Act, 1979 provides for two modes of levy of entertainment tax on cinemas.
