AI Structured Summary
Not yet generated for this judgment
Judgment
Sudhanshu Dhulia, J
The petitioner in Writ Petition (M/S) No.3754 of 2018 is running a multiplex in Dehradun, whereas the petitioner in Writ Petition (M/S) No.3756 of 2018 is running a multiplex in Rudrapur.
According to the petitioners, they have opened their multiplexes in the cities of Dehradun and Rudrapur in pursuance of the order dated 07.06.2011, whereby a policy decision was taken by the State of Uttarakhand that for a new multiplex which will be opened in the State, no entertainment tax will be charged from it and it will be exempted from payment of entertainment tax for a period of five years or till the multiplex recovers its costs of construction, whichever is earlier.
Pursuant to the said Government Order dated 07.06.2011, multiplexes were opened by the petitioners in Dehradun and Rudrapur and thereafter vide order dated 22.01.2015, the Entertainment Tax Department had granted exemption on the entertainment tax from 08.01.2015 to 07.01.2020.
The petitioners have already availed their entertainment tax for more than two and a half years. Meanwhile, since the Goods and Services Tax (in short "GST") came into force w.e.f. 01.07.2017, now the petitioners are subjected to GST regime and the earlier exemption granted to the petitioners will not operate.
Learned counsel for the petitioners would argue that in other States where a similar situation has come up and difficulties were being faced by the multiplex owners, the State has come forward for their help and they have applied a compensatory scheme in their favour. Reference is being given to the policy of the States of Uttar Pradesh and Rajasthan in this regard.
Learned State Counsel, on the other hand, would argue that under the GST regime nothing can be done.
In view of this Court as well, since a new tax regime has come into force w.e.f. 01.07.2017, the earlier benefit which the petitioners were getting as per the Government Order dated 07.06.2011 will not operate now in their favour.
However, the petitioners would be at liberty to apprise the State Government of these facts which they have raised before this Court in the present writ petitions, such as about the compensatory scheme made by the States of Uttar Pradesh and Rajasthan and in case the petitioners are able to convince the State Government about for bringing a similar scheme here, the State Government may pass appropriate orders in the matter in accordance with law, as expeditiously as possible but preferably within twelve weeks from the date of production of a certified copy of this order.
The writ petitions stand disposed of accordingly.