THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.7543 of 2000 Dated:09.11.2011 Between: M/s.Sesha Mahal. …Petitioner And The Entertainment Tax Officer – cum – Commercial Tax Officer, Brodipet, Guntur, Guntur District. …Respondent THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.7543 of 2000 ORDER: (per Hon’ble Sri Justice V.V.S.Rao) The petitioner is an exhibitor of cinematograph films. Being aggrieved by the demand notice dated 06.04.2000, whereby and whereunder it was asked to pay a sum of Rs.4,86,661/- towards arrears of entertainment tax for the periods 1997-1998, 1998-1999 and 1999-2000, the present writ petition is filed. A perusal of the impugned order would show that so as to undertake reconciliation of the amounts of entertainment tax paid by the petitioner, the Joint Collector ordered the exercise to be taken by the respondent herein. In obedience thereto, a notice was issued to the petitioner to produce the documentary evidence for the purpose of recalculation. It did so. After giving due credit to the amounts paid by the petitioner as well as deducting the tax free maintenance charges of 10 paise on each ticket from 11.07.1994 and 25 paise from 14.07.1995, the respondent issued the impugned demand. While doing so, the amount of Rs.1,06,375/- towards tax free maintenance was given credit. The only grievance of the petitioner is that while calculating the entertainment tax at the applicable rate, the tax was calculated on the gross amount received by the Cinema Theatre without giving credit to the maintenance charges on which there cannot be any tax. There is force in the submission made by the petitioner. In the counter affidavit filed, the method and manner of calculation by taking into consideration the gross amount is not seriously denied. Be that as it is, learned Counsel for the petitioner submits that during the pendency of the writ petition, his client has paid the entire demanded amount and also made a representation to recalculate the tax liability and refund the excess amount paid. The same is still pending. We make it clear that when the entertainment tax is to be calculated, the respondent has to first deduct the tax free maintenance charges from the gross amount and then determine the entertainment tax. As this exercise can be undertaken by the respondent, we deem it proper to remit the matter to the respondent. Accordingly, the writ petition shall stand disposed of with a direction to the respondent to recalculate the entertainment tax payable by the petitioner for the periods 1997-1998, 1998-1999 and 1999-2000 keeping in view the observations made hereinabove. This exercise shall be completed within a period of two months from the date of receipt of a copy of this order after giving notice to the petitioner. We also make it clear that if it is found that the petitioner is eligible for refund, the same shall be refunded as the theatre is statedly closed and is not functioning. There shall be no order as to costs. _______________ (V.V.S.RAO, J) _____________________ (SANJAY KUMAR, J) 09.11.2011 vs