M/S Jaswant Talkies vs Commercial Taxes Officer, Bhilwara

The Supreme Court addressed the imposition of penalties under Section 10 of the Rajasthan Entertainment and Advertisement Tax Act, 1957, holding that penalties cannot be levied per viewer for the admission of children without tickets. The Court emphasized that the maximum penalty should not exceed Rs.500, as determined by the Rajasthan Taxation Board, and criticized the Rajasthan High Court for relying on a precedent that contradicted established legal principles. The appeal was allowed, setting aside the High Court's order restoring the excessive penalty imposed by the Assessing Officer.