STATE OF U.P. vs VINAY KUMAR JAIN

The Supreme Court examined the Uttar Pradesh Entertainments and Petting Tax Act, 1979, particularly Section 3 and Rule 24-A of the Uttar Pradesh Entertainments and Betting Tax Rules, 1981, regarding the levy of entertainment tax. The Court upheld the Allahabad High Court's decision that the District Magistrate could not deny a cinema proprietor's request to reduce seating capacity and opt for a composition scheme based solely on previous declarations. The Court ruled that the reasons for denial, including potential revenue loss, were irrelevant, affirming the High Court's judgment.