The State Of Karnataka & Ors. Appellants vs M/S. Drive-In Enterprises Respondent

The Supreme Court upheld the Karnataka High Court's decision to strike down sub-clause (v) of Clause (i) of Section 2 of the Karnataka Entertainment Tax Act, ruling it ultra vires the legislative competence of the State Legislature. The Court emphasized that the entertainment tax could only be levied on persons entertained, not on vehicles, as per the definition of 'Drive-in-Cinema' under the Karnataka Cinemas (Regulation) Rules, 1971. The Court affirmed the High Court's interpretation that the amended provisions did not confer valid authority for such a levy.