SRI SRINIVASA THEATRE vs GOVERNMENT OF TAMIL NADU .

The Supreme Court upheld the constitutional validity of Section 5A(1) of the Tamil Nadu Entertainment Tax Act, 1939, which classifies cinema theatres for tax purposes based on the 'admission system' and 'composition system'. The Court found that the classification was reasonable and had a nexus with the object of the enactment, thus not violating Articles 14 and 19(1)(g) of the Constitution. The exemption for temporary and open theatres was also deemed non-discriminatory, affirming that the changeover from the composition system to the admission system was not an unreasonable restriction.