Have Theatres Passed On Benefit Of Entertainment Tax Exemption To Cinema Goers? Supreme Court Asks HC To Decide

The Bench of Chief Justice DY Chandrachud, Justices P Narasimha and JB Pardiwala was considering a challenge against a judgement of the High Court passed in 2019.

The subject matter of the plea were four government orders by which the State Government had granted an exemption from the payment of entertainment tax under Section 8 of the Andhra Pradesh Entertainment Tax Act, 1939 to theatre managements.

Before the High Court, the grievance in the PIL filed by Cine Prekshakula Viniyoga Darula Sangham was that though the theatres availed of the tax exemption, they did not pass on the benefit to the cinema-goers.

The High Court dismissed the plea on the ground that the subject matter of the plea, I.e., the GOs, had become infructuous; by efflux of time come to an end.

This approach of the High Court is not correct, the Supreme Court said while setting aside the 2019 order.

"Having regard to the ambit of the reliefs which have been sought in the petition, the High Court was in error in disposing of the petition as infructuous. We accordingly allow the appeal and set aside the impugned order dated 23 October 2019. Writ Petition (PIL) 78 of 2017 is remitted back to the High Court for the State of Telangana for disposal afresh"

The Court then asked the High Court to dispose of the matter in three months.

Cine Prekshakula Viniyoga Darula Sangham Vs The State of Telangana & Ors (SLP (Civil) No 15238 of 2022) 

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