For the purpose of appreciating what is argued, Section 2 7 of the Local Authorities Entertainment Tax Act and Section 3 thereof, as they read at the relevant time, may be quoted, thus 2 7 Payment for admission includes a any payment made by a person who, having been admitted to one part of place of entertainment, is subsequently admitted to another part thereof, for admission to which a payment involving a tax or a higher rate of tax is required b any payment for seats or other accommodation in a place of entertainment and c any payment for any purpose whatsoever companynected with an entertainment which a person is required to make as a companydition of attending or companytinuing to attend the entertainment in addition to the payment, if any, for admission to the entertainment.
Section 3 empowers the local authorities to levy a tax at a rate number less than 10 and number more than 23, The rate was 20 until, by numberification issued pursuant to a resolution of the Municipal Council, Tellicherry dated 31st May, 1969, it was enhanced to 25 with effect from 15th July, 1969.
And Section 3 provides General provisions regarding the levy of the tax and the rate of tax Any local authority may levy a tax hereinafter referred to as the entertainment tax at a rate number less than 10 and number more than 25 on each payment for admission to any entertainment.
These appeals are directed against the judgment and order of a Division Bench of the High Court of Kerala reversing the judgment of a learned single Judge allowing the writ petition filed by the appellants.
