JUDGMENT : S. Manu, J. Kerala Cultural Activists' Welfare Fund Act, 2010 was enacted to constitute a fund for the welfare of cultural activists. In order to provide monetary resource for the Fund, Section 3C was incorporated into the Kerala Local Authorities Entertainments Tax Act, 1961, by Amendment Act of 2013. 2. Much later, G.O.No.(Rt.)No.137/2024/LSGD dated 18.1.2024 was issued with directions to the authorities concerned for proper collection of the cess, its remittance in the account of the Welfare Fund Board and issuance of No Due Certificate to the proprietors of cinema theaters. 3. Main grievance raised in these writ petitions is regarding insistence by the Secretaries of the Local Authorities concerned for production of ‘No Due Certificate’ issued by the Kerala Cultural Activists' Welfare Fund Board for renewal of license under the Kerala Cinemas (Regulation) Act, 1958. 4. Learned counsel appearing for the petitioners argued that no provision in the Kerala Cinemas (Regulation) Act, 1958 and the Kerala Cinemas (Regulation) Rules, 1988 provide for submitting ‘No Due Certificates’ issued by the Kerala Cultural Activists' Welfare Fund Board as a pre-condition for renewal of license. They therefore contended that, while exercising the power to renew the license under the Kerala Cinemas Regulation Act, Secretaries of the Local Authorities cannot insist for production of such certificates. According to the learned counsel for the petitioners, such demand would be illegal, arbitrary and unreasonable. Therefore, they submitted that the Local Authorities may be directed to renew licenses under the Kerala Cinemas (Regulation) Act without insisting for submitting No Due Certificates. They referred to various provisions of the Kerala Cinemas (Regulation) Act and the Rules and pointed out that no provisions are available which would enable the licensing authority to insist for payment of cess under Section 3C of the Kerala Local Authorities Entertainments Tax Act, 1961 and production of its proof for renewing the license. 5. The learned Senior Counsel appearing for the Kerala Cultural Activists' Welfare Fund Board on the other hand contended that the petitioners are attempting to evade the liability to remit cess collected from the viewers under Section 3C of the Kerala Local Authorities Entertainments Tax Act. He argued that the licensing authorities under the Kerala Cinemas (Regulation) Act are undoubtedly justified, rather bound to insist for production of No Due Certificate issued by the Board. He argued that the licensing authorities under the Kerala Cinemas (Regulation) Act are undoubtedly justified, rather bound to insist for production of No Due Certificate issued by the Board. The learned counsel referred to sub-section (6) of Section 3C of the Local Authorities Entertainments Tax Act and pointed out that provisions of Sections 5, 6, 7, 7A, 8, 9 and 10 shall apply in respect of cess on tickets for admission to cinema and the word 'tax' therein shall be construed as to include 'cess' also. He then referred to Section 6 of the Act of 1961 which deals with manner of payment of tax. Section 6(4) reads as follows:- “ 6. Manner of payment of tax: ......... (4) Notwithstanding anything contained in the Kerala Cinemas Regulation Act, 1958 (32 of 1958) or in the Kerala Panchayat Raj Act, 1994 (13 of 1994) or in the Kerala Municipality Act, 1994 (20 of 1994), no licence or permit for conducting a cinema theatre and exhibition there of shall be renewed by the local authority concerned unless the proprietor of such theatre has remitted the entertainment tax due up to the preceding month.” 6. Learned Senior Counsel argued that the above provision clearly provides that no license or permits for conducting a cinema theatre and exhibition thereof shall be renewed by the Local Authority concerned unless the proprietor of such theatre has remitted the entertainment tax due up to the preceding month. He submitted that by virtue of Section 3C(6), the said provision would apply with the same force in the case of cess under Section 3C also. He therefore submitted that the licensing authorities are acting in compliance with the provisions of the Kerala Local Authorities Entertainments Tax Act by insisting for production of No Due Certificate issued by the Welfare Fund Board for cultural activists. He justified demand made by the local authorities for remitting cess also and pointed out that the challenge against S.3C of the Act has been repelled by the Division Bench of this court recently. 7. Section 6(4) of the Kerala Local Authorities Entertainments Tax Act extracted above opens with a non obstante clause. The said provision specifically mentions about Kerala Cinemas (Regulation) Act, 1958. Sub-section (4) of S.6 was incorporated in the Act by way of the Amendment Act of 2013 along with S.3C. 7. Section 6(4) of the Kerala Local Authorities Entertainments Tax Act extracted above opens with a non obstante clause. The said provision specifically mentions about Kerala Cinemas (Regulation) Act, 1958. Sub-section (4) of S.6 was incorporated in the Act by way of the Amendment Act of 2013 along with S.3C. Hence, the legislative intention is very clear, as the said provision, which is bestowed with overriding effect over the Kerala Cinems (Regulation) Act, was incorporated along with Section 3C which encompasses sub- section (6), by virtue of which the ‘cess’ shall be construed as ‘tax’ mentioned in Section 6(4). The legislature thus manifestly desired to ensure remittance of entertainment tax as well as the cess under Section 3C till the preceding month, as a pre- condition for renewal of license under the Kerala Cinemas Regulation Act, 1958. In view of overriding effect conferred on S.6(4) of the Entertainments Tax Act over the provisions of the Kerala Cinemas Regulation Act, 1958, contention that the demand for production of No Due Certificates by the Board is not contemplated under the provisions of the latter Act cannot be accepted. Beyond any doubt licencees are bound under the provisions of the Entertainments Tax Act to remit cess collected under S.3C till the preceding month to seek renewal of the licence under the Kerala Cinemas (Regulation) Act. 8. Section 3C of the Kerala Local Authorities Entertainments Tax Act, 1961 reads thus:- “ 3C. Levy and collection of cess .-- (1) There shall be levied and collected a cess for the purposes of the Kerala Cultural Activists' Welfare Fund constituted under the Kerala Cultural Activists' Welfare Fund Act, 2010 (6 of 2011) at such rate not exceeding three rupees on each admission to cinema, the price of admission to which exceed twenty five rupees, as the Government may, by notification in the Gazette, specify, from time to time. (2) The cess levied under sub-section (1) shall be collected by the local authority along with the tax on each price for admission to cinema and the proceeds of the cess, less collection charges at such rate as may be specified by the Government, by notification in the Gazette from time to time shall be paid to the Kerala Cultural Activists' Welfare Fund Board constituted under the Kerala Cultural Activists' Welfare Fund Act, 2010. (3) The proceeds of the cess collected under sub-section (2) for each calendar month shall be remitted by the Secretary of the local authority to the account of the Kerala Cultural Activists' Welfare Fund Board on or before the last working day of the succeeding month. (4) Where the proceeds of the cess collected by the local authority is not paid within the time limit specified in sub-section (3), the local authority concerned shall pay the said amount to the Kerala Cultural Activists' Welfare Fund Board together with penalty at the rate of one and a half per cent per mensum from the said time limit. (5) The Secretary and the President or the Chairperson of the local authority concerned shall be jointly responsible for all belated payments and any amount paid to the Kerala Cultural Activists' Welfare Fund Board by way of penalty shall be realised from such Secretary and President or Chairperson of the local authority. (6) The provisions of Sections 5, 6, 7, 7A and Sections 8 to 10 shall apply in respect of cess on tickets for admission to cinema and the word 'tax' therein shall be construed as to include "cess' also". 9. It is also to be noted that the Local Authorities are bound to collect the cess and the proceedings of the cess less collection charges shall be paid to the Kerala Cultural Activists Welfare Fund Board under Section 3C(2). A time limit is stipulated under Section 3C(3). Cess collected shall be remitted by the Secretary of the Local Authority on or before the last working day of the succeeding month. Delayed payment would attract penalty as per Section 3C(4). The Secretary and President or the Chairperson of the Local Authority concerned shall be jointly responsible for all belated payments and the penalty shall be realized from them as provided under Section 3C(5). Therefore, the provisions of Section 3C are stringent and fixes responsibility on the Secretary and President or Chairperson of the Local Authority, in case there is delay in remitting the cess collected within the time limit stipulated under Section 3C(3). Conjoint reading of the provisions of Section 3C and Section 6(4) shows that collection of cess and paying it to the Kerala Cultural Activists Welfare Fund Board have been given much emphasis by the law makers. Conjoint reading of the provisions of Section 3C and Section 6(4) shows that collection of cess and paying it to the Kerala Cultural Activists Welfare Fund Board have been given much emphasis by the law makers. In case of failure to comply with the duty to collect the cess and pay the same to the Board within the time limit, the Secretary and President or Chairperson as the case may be become personally liable. 10. In view of the legal position explained above, the licensing authorities cannot be found fault with for insisting that the petitioners should produce No Dues Certificates issued by the Kerala Cultural Activists' Welfare Fund Board for renewal of licenses under the Kerala Cinemas (Regulation) Act. Writ petitions challenging communications issued by the licensing authorities requiring to produce No Dues Certificates and seeking directions to renew licenses without insisting for the same are therefore without any merits. 11. In some of the writ petitions notices issued by the Local Authorities demanding remittance of cess under Section 3C of the Kerala Local Authorities Entertainments Tax Act are also under challenge. A Division Bench of this Court considered the challenge raised against the constitutional validity of Section 3C in Kerala Film Exhibitors Federation v. State of Kerala [2025 SCC OnLine Kerala 915]. The learned Single Judge had rejected challenge against the provision and the Division Bench after elaborate consideration, upheld the judgment of the learned Single Judge. In view of the judgment of the Division Bench, the Local Authorities are bound to collect the cess and remit the same to the account of the Welfare Fund Board. Recently, by judgment dated 10.4.2025 in W.P. (C)No.14313/2016, a learned Single Judge of this Court directed the Local Self-Government Institutions to collect cess as prescribed under Section 3C of the Kerala Local Authorities Entertainments Tax Act and remit to the account of Kerala Cultural Activists' Welfare Fund Board within the time limit stipulated under the provisions of the Act. Hence the challenge against notices issued, demanding remittance of cess, also should fail. 12. In some of the writ petitions, directions were sought for considering applications for renewal of licence without insisting for No Due Certificates issued by the Welfare Fund Board. In view of the above discussion, no such directions can be issued. Hence the challenge against notices issued, demanding remittance of cess, also should fail. 12. In some of the writ petitions, directions were sought for considering applications for renewal of licence without insisting for No Due Certificates issued by the Welfare Fund Board. In view of the above discussion, no such directions can be issued. Hence, the writ petitions seeking direction to consider application for renewal of license without insisting for production of No Due Certificates are also liable to be rejected. In the result, these writ petitions are dismissed.