HC stays GO granting tax exemption to films with Tamil titles

Chennai:

A film having Tamil title won’t be able to avail exemption under Tamil Nadu Entertainment Tax as Madras High Court has ordered stay on Government Order 89 till further hearing.

The Government Order 89 of Commercial Tax and Registration department dated July 21, 2011 has put forth certain norms before granting tax exemption to films having Tamil title. These include a film should have obtained ‘U’ certificate from film censor board besides the theme of the story should be to promote Tamil language. The GO also states that that the dialogue in the film should be in Tamil besides violence and obscenity should not find a place beyond tolerable limit.

The first bench comprising acting Chief Justice Satish K Agnihotri and Justice M M Sundresh stayed the Government Order after hearing a petition filed by advocate G B Motcham seeking the court direction to take action against erring theatre owners, who are contravening the provisions relating to exemption claimed under Tamil Nadu Entertainment Tax Act.

The judges said that notice was issued on various occasions and time was granted for filing counter to the state government. “Despite several opportunities, the state has not shown interest in filing counter,” the judges said.

“It appears the state has nothing to say in this matter. In view of the above, it is in the interest of the parties to stay the Government Order dated July 21, 2011 till further hearing,” the judges said. The case was adjourned for two weeks.