SC issues notice to I&B ministry on PVR plea

NEW DELHI: The Supreme Court on Monday issued notice to the Centre on a petition by multiplex operator PVR Ltd, challenging the government's notice asking the company to pay advance tax of Rs nine lakh for documentaries that were yet to be screened in its theaters in Bangalore.

A bench headed by Justice Arijit Pasayat issued notice asking the Union Ministry of Information and Broadcasting to file reply to the allegations.

PVR counsel Altaf Ahmed and D K Garg contended that the ministry, on the recommendations of the Films Division, had demanded an advance tax of Rs 9.09 lakh for the period November 16, 2006 to March 31, 2007 for showing documentary films at its 11 theatres in a multiplex in the city.

The company said it had obtained all documentary films from Media International and not from the Films Division.

The Ministry had on June 17, 2003 issued guidelines under the Cinematograph Act, 1952 directing district magistrates to levy one per cent tax on the income earned by theatre owners from exhibiting films and documentaries.

In view of the guidelines, the Karnataka government had asked PVR to compulsorily obtain a certificate from the Films Division and exhibit only films that were approved by the latter.

Challenging the Karnataka High Court order that rejected its plea, PVR alleged that Films Division authorities were harassing it.

Alleging that it had been a victim of conflicting orders passed by the High Court, PVR said it had already paid Rs 8.54 lakh tax as demanded by the district magistrate.

While a single judge had dismissed its petition, a division bench had quashed the demand notice and directed the company to deposit Rs 8.54 lakh, the petition added.