FAST REWIND
>> In 2004, government reimburse entertainment tax for up-gradation of cinema theaters
>> Subsidy to Inox Leisure Limited in Panaji and Osia Multiplex in Margao is refused
>> Multiplex operators move District Court, which orders reimbursement of tax subsidy
>> Govt challenges order. The Bombay HC at Goa overturns the district court judgement
PANAJI: The Bombay High Court at Goa has overturned a judgement of the district court which had directed the state government to reimburse Entertainment Tax subsidy to Inox Leisure Limited and Osia Multiplex which they had claimed under the “Goa Entertainment Tax based Subsidy for Cinema Houses (Theaters) Scheme, 2004.”
The scheme for reimbursement of entertainment tax collected and paid by theaters as subsidy on 100% basis for a period of five years (2004-2009) was formulated by the Parrikar-led government back in 2004 in view of the International Film Festival of India.
The government noted that the public theaters which were found to be in bad shape and in need of support from the Government by way of incentives and concessions are required to be upgraded to the required standard.
However, the government refused to grant the subsidy to Inox Leisure Limited in Panaj and Osia Multiplex in Margao on grounds that they were new theaters and were in not in a bad shape. However, the two multiplex operators challenged the order in the District Court which led to the government challenging it in the High Court.
“The existing cinema halls in account of their ticket rates and other factors were unable to make significant investment on up-gradation. Such up-gradation was necessary on account of IFFI. Therefore, the government by formulating the scheme offered incentives and concessions to such old cinema halls/theatres which were in bad shape. The position of brand new multiplexes was entirely different. They not only had upgraded infrastructure and facilities but further they were charging proportionately higher fees to their consumers. The said scheme was obviously not formulated to extend any assistance to such brand new multiplexes,” the High Court ruled while allowing the appeals by the State government.
Court has now directed that the multiplex owners pay back the money within a period of four weeks with interest at the rate of 10%.
