CHENNAI:Mumbai-based entertainment group Inox Leisure has challenged the Madras High Court’s recent order to reduce the price of tickets for films exempted from entertainment tax.
The single-member bench had recently directed that the benefit of exemption from entertainment tax must be passed on to viewers by reducing the ticket prices. Appellant senior counsel P Wilson contended that the judgment was violative of the provisions of both the TN Entertainment Act and TN Cinemas Regulation Act. To get the exemption from the government, a producer had to abide by various conditions and stipulations and undertake a rigorous exercise at various stages.
Hence, the benefit for grant of the exemption should be given only to the producer, who would share it with the distributors and exhibitors. The single judge had failed to take into consideration the facilities provided by exhibitors in theatres, the counsel argued.