VENKATESHWARA THEATRE vs STATE OF ANDHRA PRADESH .

The Supreme Court upheld the constitutional validity of the Andhra Pradesh Entertainment Tax Act, 1939, specifically Sections 4 and 5, stating that the legislative competence of the State Legislature under Entry 62 of List II of the Seventh Schedule allows for the imposition of entertainment tax based on gross collection capacity. The Court clarified that the mode of tax levy does not violate Article 14 of the Constitution, as it does not result in discrimination among theatres within the same local area. The Court also ruled that the provisions do not infringe upon the rights guaranteed under Article 19(1)(g) as they are reasonable restrictions under Article 19(6).