In a significant ruling, the Jodhpur bench of the Rajasthan High Court has directed the Deputy Commissioner of Commercial Taxes in Bikaner to recall an order that denied a cinema theatre the benefits of an amended entertainment tax scheme. The court labeled the Deputy Commissioner's order as contemptuous, noting that it reaffirmed a previous decision that the High Court had annulled in 2014.
The case involves Alok Chitra Mandir, a cinema theatre that had opted for a composition scheme concerning entertainment tax. An amendment to this scheme reduced the tax composition rate. However, the Commissioner issued an order stating that Alok Chitra Mandir would be governed by the original, unamended scheme, effectively denying the theatre the benefits of the tax reduction. This order was annulled by the High Court in 2014, which directed the authorities to reconsider the matter.
Following the 2014 judgment, Alok Chitra Mandir filed a rectification application, seeking the benefits of the amended tax scheme. Despite the High Court's clear directives, the Deputy Commissioner issued an order on September 8, 2016, reaffirming the annulled 1995 decision and denying the theatre the benefits of the amended scheme. In response, Alok Chitra Mandir filed a contempt petition with the High Court.
Justice Rekha Borana, presiding over the case, reviewed the 2014 judgment and observed that the High Court had explicitly stated that the petitioner could not be deprived of the benefits of the amended scheme, which had come into effect on February 23, 1995. The court had also rejected the department's contention that the petitioner should be governed by the old, unamended scheme.
Justice Borana noted that the Deputy Commissioner's 2016 order was in direct contravention of the High Court's 2014 judgment. She stated, "In the specific opinion of this Court, the said approach of the Deputy Commissioner clearly amounts to the defiance of the judgment dated 04.04.2014." The court emphasized that the Deputy Commissioner was aware of the 2014 judgment and its findings, yet chose to affirm the annulled 1995 order, an action the court deemed contemptuous.
The High Court further highlighted that the 2014 judgment had directed the Deputy Commissioner to determine whether Alok Chitra Mandir was entitled to a refund of any excess entertainment tax it had paid. Instead of addressing this issue, the Deputy Commissioner reaffirmed the annulled order, disregarding the High Court's directives.
In conclusion, the Rajasthan High Court directed the Deputy Commissioner to recall the contemptuous order dated September 8, 2016, and to comply with the directives issued in the 2014 judgment. This ruling underscores the importance of adherence to judicial decisions by administrative authorities and reinforces the judiciary's role in ensuring that justice is served in accordance with the law.
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