Thereafter he served on the respondents numberices calling upon them to show cause why the price of the tickets issued which had escaped assessment should number be brought to tax under the Madras Entertainments Tax Act, 1939 and further to levy surcharge on the payments for admission under the Madras Local Authorities Finance Act, 1961.
The respondents moved the High Court of Madras under Article 226 of the Constitution to quash the assessment.
Thereafter the assessing authority levied entertainment tax and surcharge on the price of the tickets which according to him had escaped assessment.
The 1st respondent in Civil Appeal No.
For the purpose of pronouncing on the questions of law arising for decision, it is sufficient to refer to the facts of the case in Civil Appeal No.
2462 of 1969 as has been done by the High Court.
2462 of 1969, is the Managing Partner of the cinema theatre known as the K.M.S. Theatre at Mettupalayam in Coimbatore District.
On November 7, 1965, the C.T.O. Erode, made surprise inspection of the theatre and found the booking clerk actually selling unauthorised tickets with a forged seal C.T.O. Mettupalayam.
The officer seized the forged seal and other companynected materials alongwith the bogus tickets.
The respondents objection was duly companysidered and rejected.
