Sajja Sridhara Rao v. Entertainment Tax Officer,

THE HON'BLE THE ACTING CHIEF JUSTICE RAMESH RANGANATHAN AND THE HON'BLE SRI JUSTICE U.DURGA PRASAD RAO Writ Petition No.14145 of 2002 ORDER: (Per the Hon'ble The Acting Chief Justice Ramesh Ranganathan) The proceedings, under challenge in this writ petition, is the notice dated 26.07.2002 demanding arrears of entertainment tax of Rs.2,43,990/- for the period 01.10.1984 to 04.04.1992. The case of the petitioner is that he purchased the said cinema theatre in the court auction on 31.03.1992; since entertainment tax arrears relate to a period before he purchased the said property, he cannot be mulcted with the said liability; and it is the liability of the previous owner, who ran the cinema theatre earlier, to pay these tax arrears.

On the other hand Sri S.Suri Babu, learned Special Standing Counsel for Commercial Taxes, would submit that the tax due can be recovered from the property; the mere fact that it was purchased by the petitioner in a court auction does not disable the Department from recovering the said amount; the petitioner's father was one of the joint owners of the cinema theatre prior to the property being subjected to sale in the court auction; and, therefore, the action of the respondents in issuing the impugned notice cannot be faulted.

Any action, for recovery of the tax arrears, could only have been taken by the respondents after putting the petitioner on notice, and after giving him an opportunity of being heard. It is the petitioner's specific case that, despite their having submitted a representation in this regard, the entertainment tax officer failed to

consider the same; and he was insisting that the petitioner pay the entertainment tax amount.

While this Court, in proceedings under Article 226 of the Constitution of India, would not examine the rival submissions on its merits, suffice it to make it clear that any action which the respondents can take is only after giving the petitioner an opportunity of being heard, and after considering his objections to the recovery of tax arrears from him.

Ends of justice would be met if the respondents are directed not to take any coercive action against the petitioner, for recovery of the entertainment tax, till the petitioner's representation is considered, a reasoned order is passed thereupon, and is communicated to the petitioner. The entire exercise, culminating in a reasoned order being passed and communicated to the petitioner, shall be completed within a period of two months from the date of receipt of a copy of this order.

The Writ Petition stands disposed of accordingly.

Miscellaneous petitions pending, if any, shall also stand disposed of. There shall be no order as to costs.

_________________________________ (RAMESH RANGANATHAN, ACJ) _____________________________ (U.DURGA PRASAD RAO, J) 22nd September 2016 JSU

THE HON'BLE THE ACTING CHIEF JUSTICE RAMESH RANGANATHAN AND THE HON'BLE SRI JUSTICE U.DURGA PRASAD RAO Writ Petition No.14145 of 2002 Date: 22.09.2016 JSU