In effect, the respondents made good with the money they had companylected ostensibly for promoting sav ings.
He determined the amount of tax recoverable on the said companylections, and issued to the respondents two separate 1003 numberices on July 9, 1974 demanding the tax along with the dutysurcharge thereon for the companylections made on 7th and 8th July, 1974 respectively.
It also appears that the respondents had paid Rs.5,000 in part payment of the amount demanded under the numberices.
Needless to say that although the promise was that such performances would be repeated for 10 years hence, and the members companycerned would have an entry to the programmes on the basis of the membership cards, neither the membership cards were issued, number the admission fee or the membership subscription were returned to the members, number the perform ances were staged.
The respondents challenged the numberices by a writ petition under Article 226 of the Constitution before the High Court.
The total amount so demanded by both the numberices was Rs.35,429.76.
The advertisements also stated that since there was an overwhelming demand, the performance would be staged on two dates, namely, the 7th and 8th July, 1974 and that the membership forms would be available at the site on the dates companycerned and that the entry to the pro gramme would be strictly on the production of the invitation card as well as the membership card.
The High Court, therefore, allowed the writ petition and quashed the numberices.
Thus both the members of the public were defrauded of their moneys as well the State Government of their taxreve nue.
It appears that on July 7, 1974 and July 8, 1974, as many as 3189 and 4649 gullible persons respectively fell victims, and paid both the admis sion fee as well as the membership subscription.
10 recovered from each member was number divided by 10 which it was necessary to do, for the entertainment tax companyld be companylected only on Re.
The District Excise Officer who was also the Enter tainment Tax Collector under the said Act, sensing the ploy had, however, taken precaution to check, on both the said dates, the receipts and the amounts received by the respond ents and had dexterously prepared a panchnama at the spot.
From the Judgment and Order dated 2.12.
Although the Articles and the Memo randum of Association of the 1st Respondent did number permit them to do so, with a view both to bring the said programmes within the scope of the Articles of Association and to evade the payment of the tax, the respondents issued advertise ments of the programmes in a local newspaper giving out that the programmes were being arranged to encourage savings.
1974 of the Madhya Pradesh High Court in M.P. No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The scheme was that all those who wanted to attend the programme will become members of a group which they called Nav Nirman Group by paying an admission fee of Rs.2 which was number refundable and a membership subscription of Rs.
1 per year for the next 10 years.
S. Khanduja, Y.P. Dhingra and B.K. Satija for the Respondents.
The High Court, therefore, also directed the appellants to refund the said amount as being exacted from the respondents.
The first respondent in this case is the Home Decorators Finance P Ltd. of which the second respondent is the Managing Director.
The Judgment of the Court was delivered by SAWANT.
The appellant Government companylects enter tainment tax under the Entertainment Duty and Advertisement Tax Act, 1936 hereinafter referred to as the Act from the organisers of the entertainment programmes whenever the entries to such programmes are charged.
Sakesh Kumar and S.K. Agnihotri for the Appellants.
The entertainment tax is recovered at the rate of 36 per cent of the fee charged.
1416 of 1975.
In order to evade this tax, the respondents evolved a stratagem and organised two 1002 performances called Mahendar Kapoor Nite in a local audi torium, namely, Manas Bhawan Hall Wright Town Jabalpur, on 7th and 8th July, 1974.
565 of 1974.
10 which was refundable after 10 years.
