Karnataka HC Quashes Multiplex Cess Order, Backs PVR INOX and MAI
The Karnataka High Court has quashed show cause notices issued to multiplexes, including PVR INOX, regarding a 2% cess on cinema tickets. The court found that the Karnataka Cine and Cultural Activists (Welfare) Act, 2024 and accompanying rules had not been formally notified in the official gazette, rendering the cess order without jurisdiction.
The Multiplex Association of India and PVR INOX had challenged an office order dated 29 August 2026 directing the cess deposit. The government withdrew the original order on 9 September 2026 on an emergent basis. The court upheld the petition, quashing the show cause notices while leaving open the constitutional validity question of the underlying act and rules.
