w w w . L a w y e r S e r v i c e s . i n



Hotel Soorya International, Represented by its Partner, S. Arumugam v/s The Secretary to Government, Home, Prohibition & Excise, Chennai & Others


Company & Directors' Information:- HOTEL CORPORATION OF INDIA LIMITED [Active] CIN = U55101MH1971GOI015217

Company & Directors' Information:- K N INTERNATIONAL LIMITED [Active] CIN = U45201UP2002PLC026841

Company & Directors' Information:- D B H INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1950PTC057209

Company & Directors' Information:- V AND S INTERNATIONAL PVT LTD [Active] CIN = U74899DL1992PTC049964

Company & Directors' Information:- S S A INTERNATIONAL LTD [Active] CIN = U15122DL1995PLC068186

Company & Directors' Information:- A T N INTERNATIONAL LIMITED [Active] CIN = L65993WB1983PLC080793

Company & Directors' Information:- D D INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909PB1995PTC016929

Company & Directors' Information:- T K INTERNATIONAL LIMITED [Active] CIN = U55101OR1982PLC001092

Company & Directors' Information:- N R INTERNATIONAL LIMITED [Active] CIN = L74999WB1991PLC051738

Company & Directors' Information:- K J INTERNATIONAL LIMITED [Active] CIN = L15142PB1993PLC011274

Company & Directors' Information:- A K S INTERNATIONAL LIMITED [Active] CIN = U74899DL1996PLC076327

Company & Directors' Information:- S P INTERNATIONAL PRIVATE LIMITED [Active] CIN = U70100WB1994PTC063228

Company & Directors' Information:- B. K. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74999DL2006PTC157013

Company & Directors' Information:- R S C INTERNATIONAL LIMITED [Active] CIN = L17124RJ1993PLC007136

Company & Directors' Information:- J C INTERNATIONAL LIMITED [Active] CIN = U51109WB1999PLC089037

Company & Directors' Information:- M T L INTERNATIONAL PRIVATE LIMITED [Amalgamated] CIN = U24219UP2001PTC025965

Company & Directors' Information:- T C N S INTERNATIONAL PRIVATE LIMITED [Amalgamated] CIN = U51311DL1996PTC080096

Company & Directors' Information:- K V S INTERNATIONAL PRIVATE LIMITED [Active] CIN = U18101DL2003PTC120770

Company & Directors' Information:- G N INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909DL2001PTC110766

Company & Directors' Information:- S H A M INTERNATIONAL PRIVATE LIMITED [Active] CIN = U45200MH1994PTC079867

Company & Directors' Information:- M K INTERNATIONAL LIMITED [Active] CIN = U51909DL1996PLC083430

Company & Directors' Information:- V. G. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51101DL2007PTC162540

Company & Directors' Information:- D R INTERNATIONAL PRIVATE LIMITED [Active] CIN = U24132DL1996PTC079867

Company & Directors' Information:- R H INTERNATIONAL LIMITED [Active] CIN = U72900DL2007PLC159452

Company & Directors' Information:- G & G INTERNATIONAL PRIVATE LIMITED [Active] CIN = U17120DL2012PTC234047

Company & Directors' Information:- A & D INTERNATIONAL PRIVATE LIMITED [Active] CIN = U36109RJ2007PTC024176

Company & Directors' Information:- K A I INTERNATIONAL PRIVATE LIMITED [Active] CIN = U13100OR2007PTC009647

Company & Directors' Information:- C G INTERNATIONAL PRIVATE LIMITED [Active] CIN = U99999MH1996PTC097577

Company & Directors' Information:- P A HOTEL INDIA PRIVATE LIMITED [Active] CIN = U55101PY2007PTC002029

Company & Directors' Information:- K C INTERNATIONAL LIMITED [Active] CIN = U74899DL1994PLC060402

Company & Directors' Information:- M P INTERNATIONAL PRIVATE LIMITED [Active] CIN = U29130MH1997PTC107943

Company & Directors' Information:- A S INTERNATIONAL LIMITED [Strike Off] CIN = U74899DL1993PLC056158

Company & Directors' Information:- H C S INTERNATIONAL PRIVATE LIMITED [Active] CIN = U15312PB2012PTC036219

Company & Directors' Information:- L N G INTERNATIONAL LIMITED [Active] CIN = U51909DL1993PLC053438

Company & Directors' Information:- S. D. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74900UP2008PTC036047

Company & Directors' Information:- S AND I INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909DL1995PTC072210

Company & Directors' Information:- L T INTERNATIONAL LIMITED [Active] CIN = U74899DL1999PLC097892

Company & Directors' Information:- A. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51102GJ2008PTC053840

Company & Directors' Information:- S J M INTERNATIONAL LIMITED [Active] CIN = U52110DL1987PLC028571

Company & Directors' Information:- S B S INTERNATIONAL PRIVATE LIMITED [Active] CIN = U18101DL1997PTC085878

Company & Directors' Information:- R. A. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51225DL2008PTC177405

Company & Directors' Information:- C S T HOTEL PRIVATE LIMITED [Active in Progress] CIN = U55101TZ1994PTC004907

Company & Directors' Information:- B G INTERNATIONAL PRIVATE LIMITED [Active] CIN = U50300PB2014PTC038889

Company & Directors' Information:- S F INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74999PB2000PTC023654

Company & Directors' Information:- R T S INTERNATIONAL PRIVATE LIMITED [Active] CIN = U63022DL1997PTC089328

Company & Directors' Information:- I K INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1995PTC066267

Company & Directors' Information:- C K INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1991PTC045625

Company & Directors' Information:- L A INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909PB2010PTC033683

Company & Directors' Information:- H R V INTERNATIONAL PRIVATE LIMITED [Amalgamated] CIN = U74899UP1993PTC057665

Company & Directors' Information:- K P INTERNATIONAL PRIVATE LIMITED [Active] CIN = U24110GJ2007PTC050026

Company & Directors' Information:- V S INTERNATIONAL PRIVATE LIMITED [Active] CIN = U85100MH1997PTC109647

Company & Directors' Information:- N N INTERNATIONAL PRIVATE LIMITED [Active] CIN = U01111DL1999PTC099094

Company & Directors' Information:- S R V INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74140DL2012PTC243060

Company & Directors' Information:- V. S. Y. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74999UP2008PTC035521

Company & Directors' Information:- U M I INTERNATIONAL LTD [Strike Off] CIN = U51909WB1990PLC049671

Company & Directors' Information:- A. R. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51900MH2010PTC228539

Company & Directors' Information:- B R INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1993PTC055562

Company & Directors' Information:- M J INTERNATIONAL PRIVATE LIMITED [Amalgamated] CIN = U74899DL1982PTC013231

Company & Directors' Information:- D N INTERNATIONAL LIMITED [Active] CIN = U36911TN1996PLC034205

Company & Directors' Information:- M. H. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U70102DL2007PTC164267

Company & Directors' Information:- H AND Z INTERNATIONAL LIMITED [Active] CIN = U10102AS1995PLC004509

Company & Directors' Information:- M G M INTERNATIONAL PVT LTD [Active] CIN = U74899DL1982PTC013580

Company & Directors' Information:- J J INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51109DL1992PTC047657

Company & Directors' Information:- H D INTERNATIONAL LIMITED [Active] CIN = U74899DL1994PLC060720

Company & Directors' Information:- K. A. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51101UP2012PTC049338

Company & Directors' Information:- J & G INTERNATIONAL PRIVATE LIMITED [Active] CIN = U18109DL2012PTC238392

Company & Directors' Information:- K R INTERNATIONAL PRIVATE LIMITED [Active] CIN = U17291DL2008PTC172188

Company & Directors' Information:- D. J. INTERNATIONAL LIMITED [Strike Off] CIN = U65910MH1999PLC119298

Company & Directors' Information:- S P INTERNATIONAL PVT LTD [Strike Off] CIN = U99999UP1965PTC003091

Company & Directors' Information:- J M INTERNATIONAL PVT LTD [Active] CIN = U45201WB1991PTC050829

Company & Directors' Information:- M M B HOTEL PVT LTD [Active] CIN = U55101MP1987PTC003855

Company & Directors' Information:- HOTEL K K (INDIA) PVT LTD [Active] CIN = U55101GJ1995PTC025898

Company & Directors' Information:- D P C INTERNATIONAL PVT LTD [Active] CIN = U74210WB1984PTC037378

Company & Directors' Information:- B M INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1992PTC048736

Company & Directors' Information:- S G INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51109WB1998PTC086547

Company & Directors' Information:- B N INTERNATIONAL PRIVATE LIMITED [Active] CIN = U15412WB1999PTC089316

Company & Directors' Information:- V A INTERNATIONAL PRIVATE LIMITED [Active] CIN = U01111DL2000PTC104712

Company & Directors' Information:- S. J. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U27310DL2007PTC169438

Company & Directors' Information:- N H B INTERNATIONAL PRIVATE LIMITED [Converted to LLP] CIN = U67190MH1997PTC107387

Company & Directors' Information:- P D K INTERNATIONAL PVT LTD [Active] CIN = U74140WB1992PTC056468

Company & Directors' Information:- G. S. C. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U29120MH1994PTC080380

Company & Directors' Information:- A J INTERNATIONAL PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1994PTC060818

Company & Directors' Information:- J S M INTERNATIONAL LIMITED [Active] CIN = U85110KA1996PLC020046

Company & Directors' Information:- M K N INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909DL2002PTC117207

Company & Directors' Information:- N M INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74120MH2012PTC234492

Company & Directors' Information:- S S M INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909DL1997PTC089876

Company & Directors' Information:- A P J INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51909HR2010PTC040304

Company & Directors' Information:- D. K. INTERNATIONAL HOTEL PRIVATE LIMITED [Active] CIN = U55101WB2005PTC101775

Company & Directors' Information:- T. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U72900DL1997PTC091049

Company & Directors' Information:- V R INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51101UP2011PTC043952

Company & Directors' Information:- A & F INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U00265KA1995PTC018998

Company & Directors' Information:- M E C INTERNATIONAL PRIVATE LIMITED [Active] CIN = U33111GJ1963PTC082423

Company & Directors' Information:- J K INTERNATIONAL PRIVATE LIMITED [Active] CIN = U01100MH2004PTC144492

Company & Directors' Information:- D. S. R. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74999UP2010PTC039954

Company & Directors' Information:- B L S INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74900UR2010PTC033210

Company & Directors' Information:- R B INTERNATIONAL LTD [Strike Off] CIN = U18101WB1993PLC059515

Company & Directors' Information:- P Y INTERNATIONAL PRIVATE LIMITED [Converted to LLP] CIN = U51102RJ1995PTC010133

Company & Directors' Information:- R C INTERNATIONAL LIMITED [Strike Off] CIN = U51909TG1991PLC012477

Company & Directors' Information:- N J INDIA INTERNATIONAL LIMITED [Strike Off] CIN = U70101UP2004PLC028722

Company & Directors' Information:- I AND A INTERNATIONAL PRIVATE LIMITED [Active] CIN = U72200TG1995PTC019936

Company & Directors' Information:- P V INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1998PTC094598

Company & Directors' Information:- I B INTERNATIONAL PRIVATE LIMITED [Under Process of Striking Off] CIN = U72200DL2000PTC105735

Company & Directors' Information:- A M INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC066228

Company & Directors' Information:- K K M INTERNATIONAL PRIVATE LIMITED [Active] CIN = U17110MH1995PTC089836

Company & Directors' Information:- Z. H. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U21098MH2010PTC210735

Company & Directors' Information:- J R INTERNATIONAL PRIVATE LIMITED [Active] CIN = U51909TN2002PTC048744

Company & Directors' Information:- H P AND B G INTERNATIONAL PRIVATE LIMITED [Active] CIN = U50500DL1999PTC100851

Company & Directors' Information:- L S INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U74999DL2009PTC193390

Company & Directors' Information:- M B INTERNATIONAL PVT LTD [Strike Off] CIN = U52190DL2001PTC110572

Company & Directors' Information:- O K R INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U74900DL1996PTC077152

Company & Directors' Information:- B B C INTERNATIONAL PVT LTD [Strike Off] CIN = U25209WB1984PTC037383

Company & Directors' Information:- K S INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51909MH2001PTC134345

Company & Directors' Information:- A TO Z INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51101TN1992PTC022507

Company & Directors' Information:- HOTEL SOORYA PVT. LTD., [Active] CIN = U55101PY1992PTC000843

Company & Directors' Information:- C & A INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51900MH1982PTC026718

Company & Directors' Information:- J S INTERNATIONAL PVT LTD [Strike Off] CIN = U51900MH1982PTC027604

Company & Directors' Information:- A C INDIA INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74899DL1989PTC034784

Company & Directors' Information:- S. S. N. INTERNATIONAL PRIVATE LIMITED [Active] CIN = U29306DL1981PTC012616

Company & Directors' Information:- P A HOTEL PRIVATE LIMITED [Active] CIN = U92490TN1981PTC008959

Company & Directors' Information:- INDIA INTERNATIONAL COMPANY PRIVATE LIMITED [Active] CIN = U51228MH1955PTC009483

Company & Directors' Information:- R K INTERNATIONAL PVT LTD [Strike Off] CIN = U63040PB1982PTC004926

Company & Directors' Information:- L & P INTERNATIONAL PRIVATE LIMITED [Active] CIN = U52100DL2016PTC292025

Company & Directors' Information:- J D K INTERNATIONAL PVT LTD [Active] CIN = U74899DL1982PTC014087

Company & Directors' Information:- HOTEL E V P PRIVATE LIMITED [Active] CIN = U55101TN1990PTC019823

Company & Directors' Information:- R B N INTERNATIONAL PRIVATE LIMITED [Active] CIN = U52300DL2012PTC243998

Company & Directors' Information:- P AND P INTERNATIONAL PRIVATE LIMITED. [Strike Off] CIN = U24100OR1993PTC003244

Company & Directors' Information:- HOTEL K. K. PRIVATE LIMITED [Strike Off] CIN = U55101OR1995PTC004187

Company & Directors' Information:- D J R HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101MH1996PTC096508

Company & Directors' Information:- B P INTERNATIONAL PVT LTD [Strike Off] CIN = U31909HP1984PTC005785

Company & Directors' Information:- E C INTERNATIONAL PVT LTD [Strike Off] CIN = U99999DL1982PTC013146

Company & Directors' Information:- N V HOTEL PRIVATE LIMITED [Active] CIN = U55101WB1996PTC082014

Company & Directors' Information:- R A R E INTERNATIONAL PRIVATE LIMITED [Active] CIN = U31900DL2005PTC134395

Company & Directors' Information:- D I D INTERNATIONAL PRIVATE LIMITED [Converted to LLP] CIN = U28112MH2014PTC258750

Company & Directors' Information:- S R A INTERNATIONAL PVT LTD [Strike Off] CIN = U99999DL1980PTC010389

Company & Directors' Information:- R Z INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74900KA2012PTC064445

Company & Directors' Information:- M M INTERNATIONAL PVT LTD [Converted to LLP] CIN = U51312DL1977PTC008583

Company & Directors' Information:- M Y HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101TN2010PTC077329

Company & Directors' Information:- A K INDIA INTERNATIONAL PRIVATE LTD [Strike Off] CIN = U45201DL1981PTC012389

Company & Directors' Information:- D AND M HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101PN2008PTC131239

Company & Directors' Information:- O P INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U55101PB2013PTC037499

Company & Directors' Information:- J & A INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51900PB2013PTC037302

Company & Directors' Information:- A P M INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U74900TN2014PTC095953

Company & Directors' Information:- Y. A. INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U74900RJ2012PTC040431

Company & Directors' Information:- D & A INTERNATIONAL PRIVATE LIMITED [Active] CIN = U74999MH2015PTC262713

Company & Directors' Information:- R L INTERNATIONAL PRIVATE LIMITED [Active] CIN = U18204UP2016PTC076344

Company & Directors' Information:- V P S INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U93030UP2014PTC066242

Company & Directors' Information:- J V INTERNATIONAL PRIVATE LIMITED [Strike Off] CIN = U51102DL2012PTC240197

Company & Directors' Information:- R I K INTERNATIONAL PRIVATE LIMITED [Under Process of Striking Off] CIN = U52590DL2015PTC283801

Company & Directors' Information:- Y & H INTERNATIONAL PRIVATE LIMITED [Active] CIN = U63000DL2014PTC266649

Company & Directors' Information:- S R L INTERNATIONAL PRIVATE LIMITED [Under Process of Striking Off] CIN = U20296AP2013PTC085533

Company & Directors' Information:- HOTEL CHENNAI PRIVATE LIMITED [Strike Off] CIN = U99999TN1975PTC007008

Company & Directors' Information:- M D INTERNATIONAL LIMITED [Active] CIN = U74140MH1981PTC025007

Company & Directors' Information:- INTERNATIONAL CO PRIVATE LIMITED [Strike Off] CIN = U51109UR1935PTC000663

Company & Directors' Information:- A B C INTERNATIONAL PVT LTD [Strike Off] CIN = U99999DL1990PTC041062

Company & Directors' Information:- D C M INTERNATIONAL LTD. [Strike Off] CIN = U99999DL2000PTC004208

Company & Directors' Information:- B C I INTERNATIONAL LIMITED [Strike Off] CIN = U74900DL1977PLC008468

    W.P. No. 29680 of 2012 & M.P. Nos. 1 & 2 of 2012

    Decided On, 27 January 2020

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE C. SARAVANAN

    For the Petitioner: M/s. S. Akila for M/s. Sarvabhuaman Associates, Advocates. For the Respondents: R.P. Prathap Singh, Government Advocate.



Judgment Text


(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari Mandamus, calling for the records of the 2nd respondent in its proceedings bearing Proc. No. P&E 2(1)/6887/2007 dated 16.08.2012 quash the same and to forbear the respondents from collecting the privilege fee from the petitioner at the rate as applicable to a two star category hotel as prescribed under the Tamil Nadu Liquor (Licence and Permit) Rules, 1981.)

1. The petitioner is aggrieved by the impugned order dated 16.08.2012 passed by the 2nd respondent Commissioner of Prohibition and Excise. By the impugned order, the petitioner has been asked to pay a sum of Rs.4,00,000/- (Rupees Four Lakhs only) for the Assessment Years 2000-01 to 2007-08 as the alleged differential privilege fee to be paid by the petitioner.

2. The petitioner was recognised as a Two Star Hotel by the Hotel and Restaurant Approval and Classification Committee (HRACC), on 08.07.1996. The said recognition was valid for three years. The petitioner obtained F.L.3 licence on 16.04.1996 for the period of one year for supplying liquors to foreign tourists, foreigners, residents in India holding personal permits and also to citizens of India holding personal permits for the consumption of liquor within the hotel or within the private rooms of its hotel. At the time of grant of the said license, the Privilege Fee that was payable by the petitioner as a Two Star Hotel was only Rs.50,000/-.

3. At the time of grant of the said license, the 2nd respondent confirmed that the Director of Tourism, Madras had recommended for grant of F.L.3 license to the petitioner and that the petitioner satisfied the criteria laid down for Star Hotel as was required under Rule 2(XVI) of the Tamil Nadu Liquor (License and Permit) Rules, 1981 (Rules for brevity).

4. At the time of issuance of the license, the Collector of Coimbatore had the Hotel of the petitioner inspected by an Asst. Commissioner (Excise) who reported that the petitioner satisfied the criteria and condition stipulated for grant of license under the aforesaid Rules. The license was valid up to 31.03.1997 with the possessional limit of one thousand units at a time. Subsequently, the petitioner continued to renew the aforesaid license at the expiry of each period of one year.

5. The petitioner filed an application for renewal of the license in the year 1999. The petitioner was issued with a license in Form F.L.3. At the time of grant of the renewal, it was made clear that the renewal was subject to payment of the difference in the Privilege Fee if any demanded in future due to change in the star classification.

6. It appears that from the year 2000, the Privilege Fee was increased to Rs.1,50,000/- per annum for Two Star Hotels. The petitioner, however, paid only a sum of Rs.1,00,000 as privilege fee that was applicable to One Star / non Star Hotel. The petitioner failed had to renew its Two Star status after 1999 as per the Rules and thus became a non Star Hotel.

7. The petitioner's F.L.3 license was renewed for the years 2000, 2001, 2002, 2003, 2004, 2005, 2006 respectively on payment of Privilege Fee of Rs.1,00,000/-.

8. The petitioner made a fresh application on 02.03.2007 by enclosing F.L.3 License along with challan for payment of Rs.1,00,000/-. The respondent by a communication dated 23.08.2007 called upon the petitioner to pay the differential Privilege Fee for the Assessment Years 2000-2001 to 2007-2008 totaling to an amount of Rs.4,00,000/- at Rs.50,000 per year as the privilege fee.

9. The petitioner sent a representation on 25.09.2007 and stated that its ceased to be a Two Star Hotel with effect from 30.04.1999 as it had not renewed its status. The petitioner also obtained a certificate from India Tourism-Chennai on 15.10.2007 to the effect that the classification of the petitioner as a Two Star Hotel had expired as early as 30.04.1999.

10. It is the contention of the petitioner that since the petitioner's status as a Two Star was not renewed after 1999, the petitioner was not required to pay the Privilege Fee at Rs.1,50,000/-

11. The respondents in their Internal Memo of 7th December 2007 however to state that non-renewal of Star Gradation Certificate did not affect the payment of renewal fee and therefore the petitioner should be directed to pay the differential Privilege Fees of the petitioner desire to renewal.

12. The petitioner was called upon to remit a sum of Rs.4,00,000/- as arrears of the Privilege Fee by a communication dated 18.01.2008. Under these circumstances, the petitioner filed W.P.No.2363 of 2008 before this Court and challenged the aforesaid demand.

13. By an order dated 22.12.2011, this Court referred to the aforesaidRules and finally concluded that the order passed on 18.01.2008 by the 2nd respondent Commissioner, Prohibition and Excise proposing to cancel the petitioner's F.L.3 license was without following the procedure contemplated under Rule 22.

14. The said order was thus quashed and the case was remitted back to the 2nd respondent to pass a fresh order after giving an opportunity of hearing to the petitioner.

15. The 2nd respondent has passed the impugned order after hearing the petitioner. It has been concluded that the petitioner was liable to pay the differential Privilege Fee for the Assessment Years 2000-2001 to 2007-2008.

16. In this writ petition, it is the contention of the petitioner that the petitioner cannot be made liable to pay Privilege Fee of Rs.1,50,000/- during the period in dispute as the petitioner's star category status was not renewed after 30.04.1999.

17. It is the contention of the respondent that the petitioner has only renewed the existing license that was granted on 16.04.1996 at the end of each year and suppressed the fact that the petitioner had not renewed their status as a Two Star Hotel. If the petitioner had been downgraded, it should have filed a fresh application instead of filing an application for renewal of the existing license under Rule 21.

18. According to the respondents, the procedure for grant of fresh license and renewal of license are different. Since the renewal was on the strength of the classification of the petitioner as the Two Star Hotel as early as 08.07.1996, it was not open for the petitioner to pay a lesser Privilege Fee as applicable to One Star and non Star Hotels even if the petitioner had not renewed its status.

19. Heard the learned counsel for the petitioner and the respondents and perused the provisions of the Tamil Nadu Liquor (License and Permit) Rules, 1981. Rule 17 (a) contemplates license for liquor used for consumption. It contemplates that the different kinds of license to be obtained and different Privilege Fees paid by a licensee.

20. A licensee desiring to renew the license has to make an application under Rule 21 in the prescribed form( which is similar to grant of the original license) at least one month before the date of expiry of the license. The provisions of Rules 18 to 20 are to apply as far as may be for an application for renewal of license as if it, were an application for the grant of original license, if an application for renewal of the license has not been made within a period of one month before the expiry as specified therein. Rules 21 and 22 of the aforesaid Rules reads as under

21. A licence holder desiring to renew the licence shall make an application in the prescribed form (the same as for the original grant of the licence) atleast one month before the date of expiry of the licence. The application may be sent to the licensing authority direct. The provisions of rules 18 to 20 shall, as far as may be, apply to an application for renewal of licence as if it were an application for the original grant of a licence, where an application for renewal of the licence has not been made within a period of one month before the expiry as specified herein, but in no case after the expiry of the licence, the licensing authority may admit such application, provided there are good and sufficient reasons for the delay on payment of an additional fee of twenty five per cent of the prescribed licence fee.

22. Cancellation or suspension of licences.- (1) The licensing authority may, after giving in writing to the licence holder an opportunity to show cause within a reasonable time not exceeding 14 days against the action proposed to be taken or order proposed to be issued, stating the reasons there for, by an order in writing specifying the reasons, cancel the licence under these rules or suspend it for such period as it thinks fit, if in its opinion, the licence holder has failed to comply with any of the conditions of the licence or of any of the provisions of the Act or the rules made thereunder.

(2) Notwithstanding anything contained in subrule (1), the licensing authority may temporarily suspend the licence for a period not exceeding 90 days pending framing of charges for violation or irregularities noticed. In such a case, the reason for suspension shall be communicated to the licence holder within 5 days from the date of suspension.

(3) When a licence is cancelled or suspended or temporarily suspended or is not renewed after its expiry the licence holder shall not sell, use or otherwise dispose of any of the stock of liquor or medicated wine held by him under the licence at the time of such cancellation, suspension, temporary suspension or expiry and shall abide the orders of the licensing authority regarding the disposal of such stack, The licence holder shall not also be entitled to claim any compensation on account of cancellation, suspension, temporary suspension or nonrenewal of the licence.] (23) SECURITY - 1 [In the case of application for licences in Form F.L.1, F.L.2,

21. The petitioner was earlier recognised as Two Star Hotel pursuant to a recommendation of Hotel and Restaurant Approval and Classification Committee by the office of India Tourism, Tourist Office, Madras on 08.07.1996. The said classification was with effect from 08.07.1996 for a period of three years on the terms and conditions laid down in Circular No.22 HRA CC (1)/87 dated July 20, 1987.

22. The petitioner, however, did not renew its status as a Two Star Hotel at the expiry of the 3rd year which has been confirmed by a certificate dated 15.10.2007, by the office of India Tourism, Chennai. The said certificate reads as under:-

"M/s. Hotel Soorya International, located at 339 - 345, Ooty Main Road, Mettupalayam 641 301 was classified under two star category for three years w.e.f. 30.04.1996. Their classification order expired on 30.04.1999 and thereafter the above said hotel is not classified by this office and therefore M/s.Hotel Soorya International, Mettupalayam is not a star hotel."

23. There are no major difference in the procedure for obtaining a F.L.3 License. For Renewal of an existing license under the provisions of the Tamil Nadu Liquor (Licence and Permit) Rules, 1981, an application has to be made one month in advance. Only the Privilege Fees payable by a Five Star, Four Star, Three Star and Two Star category hotel and one Star and other hotels vary. Therefore, the question is whether the petitioner was required to obtain a fresh license after it ceased to be a Two Star Hotel or whether it could renew the F.L.3 license as an other hotels.

24. The procedure for obtaining a fresh F.L.3 license for all the categories of licences are one and the same. If F.L.3 licence was to be renewed under Two Star Category, the respondents should have called upon the petitioner to produce its renewal certificate as a Two Star from India Tourism.

25. The fact that the petitioner may have failed to inform the respondent that it ceased to be a Two Star Hotel with effect from 30.04.1999, in my view is of no consequence though it would have been ideal on the part of the petitioner to expressly inform the respondents that it was no longer was a Two Star Hotel after 30.04.1999.

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. The fact that the authorities also accepted of Rs.1,00,000/- as the Privilege Fee at the time of successive renewal, indicates that they had also accepted the status of the petitioner as a non Star hotel and thus renewed the successive F.L.3 license from 2000-01 to 2007-08 on payment of Privilege Fee of Rs.1,00,000/- per annum. In the successive renewals, as also in 1999 renewals, it was merely mentioned that the renewal was subject to the condition that the licensee should be the difference in privilege fee if any demanded in future. 27. In Hotel Golden Palace vs. The Commissioner of Prohibition and Excise, 2016 SCC onLine Mad 2301, this Court had ordered to refund of Privilege fee where there was no renewal of three Star status. 28. Since the petitioner ceased to be a Two Star Hotel with effect from 30.04.1999, the respondents are not justified in demanding Privilege Fee at Rs.1,50,000/- from the petitioner as there was a tacit understanding while renewing successive F.L.3 license that the petitioner was no longer as a Two Star Hotel after 1999. Therefore, the impugned order cannot be sustained. 29. In the light of the above discussion, the impugned order is quashed with consequential relief to the petitioner. Writ petition thus stands allowed. No cost. Consequently, connected Miscellaneous Petitions are closed.
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