THE STATE OF KARNATAKA vs M/S. DRIVE-IN-ENTERPRISES

The Supreme Court upheld the Karnataka High Court's decision striking down sub-clause (v) of Clause (i) of Section 2 of the Karnataka Entertainment Tax Act as beyond the legislative competence of the State Legislature. The Court emphasized that the entertainment tax levied on the admission of cars into Drive-in-Theatres was ultra vires since it was not a tax on the person entertained. The Court affirmed the High Court's ruling that the amendment made by the Karnataka Legislature did not validate the levy of tax on vehicles, thus maintaining the High Court's judgment.