The Madras High Court has cancelled the Tamil Nadu Government’s new guidelines (GO 89, 21/7/11 ) following the government pleader’s failure to file a counter. A petition was filed by Udhayanidhi Stalin’s Red Giant Movies and some others alleging that the government is partial in granting the 30 percent entertainment tax exemption.
This case came up for hearing at the High Court but the state government failed to respond to the allegations. Following this, the judge cancelled the GO. It may be mentioned here that films like Oru Kal Oru Kannadi, Jilla and Veeram did not get the tax exemption even though the films were awarded with a U certificate.
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