Karnataka Assures High Court No Coercive Action Over 2% Cinema Ticket Cess

The Karnataka government assured the High Court that it would not take coercive action against cinema exhibitors over collection of the two percent cinema-ticket cess while constitutional challenges remain pending.

What happened

The Karnataka government assured the High Court that it would not take coercive action against cinema exhibitors over collection of the two percent cinema-ticket cess while constitutional challenges remain pending. The levy was scheduled to operate from September 30. The assurance gives temporary protection without the Court finally staying or invalidating the legislation. The High Court will continue examining legislative competence, the character of the cess and the statutory framework for financing cine-worker welfare through ticket revenues.

Legal significance

The legal effect is confined to the present ruling or procedural development. Allegations and submissions are not treated as established facts.

What follows

The matter proceeds according to the operative judicial or statutory process described above.

Source: Original report