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The Commissioner of Prohibition and Excise & Another v/s Golden Sun Hotel Beach Resorts, Rep. by its Director, R.L. Jain, Kanchipuram


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

Company & Directors' Information:- N V RESORTS PRIVATE LIMITED [Amalgamated] CIN = U55101DL2005PTC140042

Company & Directors' Information:- R P RESORTS PRIVATE LIMITED [Active] CIN = U55100KL1994PTC008387

Company & Directors' Information:- K V RESORTS PRIVATE LIMITED [Active] CIN = U55101KL2008PTC022372

Company & Directors' Information:- D AND J RESORTS PRIVATE LIMITED [Active] CIN = U55101KA2005PTC037192

Company & Directors' Information:- D D RESORTS PVT LTD [Active] CIN = U55101UP1996PTC085622

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

Company & Directors' Information:- J K RESORTS (INDIA) PRIVATE LIMITED [Active] CIN = U55101PB2010PTC033935

Company & Directors' Information:- GOLDEN SUN RESORTS PRIVATE LIMITED [Active] CIN = U55101TN1990PTC019608

Company & Directors' Information:- E & G RESORTS PRIVATE LIMITED [Active] CIN = U55100MH2011PTC219298

Company & Directors' Information:- V B RESORTS PRIVATE LIMITED [Active] CIN = U92400MH2006PTC160282

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

Company & Directors' Information:- K M A RESORTS PRIVATE LIMITED [Active] CIN = U55101KL2006PTC019473

Company & Directors' Information:- G L RESORTS LIMITED [Active] CIN = U55101AS2001PLC006625

Company & Directors' Information:- J K S RESORTS PRIVATE LIMITED [Active] CIN = U55101DL2005PTC139671

Company & Directors' Information:- A B RESORTS PRIVATE LIMITED [Active] CIN = U55101CH1991PTC011581

Company & Directors' Information:- H. P. RESORTS CORPORATION PRIVATE LIMITED [Active] CIN = U55101PB2013PTC037173

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

Company & Directors' Information:- A V RESORTS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059863

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

Company & Directors' Information:- R & R RESORTS PVT LTD [Active] CIN = U55101WB1992PTC055530

Company & Directors' Information:- J AND B HOTEL & RESORTS PRIVATE LIMITED [Active] CIN = U51109WB2007PTC116620

Company & Directors' Information:- G S K HOTEL PRIVATE LIMITED [Active] CIN = U55101MH1998PTC114849

Company & Directors' Information:- N K RESORTS PRIVATE LIMITED [Active] CIN = U55101UR2010PTC033163

Company & Directors' Information:- T K RESORTS PRIVATE LIMITED [Active] CIN = U55100PB2005PTC029014

Company & Directors' Information:- SUN PVT LTD [Active] CIN = U24246RJ1984PTC003093

Company & Directors' Information:- G SUN INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC071425

Company & Directors' Information:- K J M RESORTS INDIA PRIVATE LIMITED [Active] CIN = U55102KL1997PTC011072

Company & Directors' Information:- O AND S RESORTS PRIVATE LIMITED [Amalgamated] CIN = U55101DL2005PTC137184

Company & Directors' Information:- S. J. RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101UR2007PTC032446

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

Company & Directors' Information:- V K N RESORTS PRIVATE LIMITED [Active] CIN = U55100MH1998PTC113913

Company & Directors' Information:- A P RESORTS PRIVATE LIMITED [Active] CIN = U55101JK2013PTC003836

Company & Directors' Information:- U AND I RESORTS PRIVATE LIMITED [Active] CIN = U55100AN2009PTC000115

Company & Directors' Information:- P AND S RESORTS INDIA PRIVATE LIMITED [Strike Off] CIN = U55101KL2006PTC019352

Company & Directors' Information:- S B RESORTS PRIVATE LIMITED [Active] CIN = U55204AP2014PTC095375

Company & Directors' Information:- S P RESORTS PRIVATE LIMITED [Strike Off] CIN = U45201OR2011PTC012963

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

Company & Directors' Information:- GOLDEN RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101OR1997PTC004833

Company & Directors' Information:- P G C RESORTS (INDIA) PRIVATE LIMITED [Active] CIN = U55101TZ2009PTC015156

Company & Directors' Information:- M. G. RESORTS PRIVATE LIMITED [Active] CIN = U45200UP2006PTC032590

Company & Directors' Information:- K L RESORTS PVT LTD [Strike Off] CIN = U55102KL1994PTC008129

Company & Directors' Information:- K M S RESORTS PVT LTD [Strike Off] CIN = U55101HP1994PTC014873

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 S RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101CH1998PTC021876

Company & Directors' Information:- G P RESORTS PRIVATE LIMITED [Strike Off] CIN = U55102MH1996PTC100147

Company & Directors' Information:- R S D RESORTS PVT LTD [Strike Off] CIN = U55101CH1991PTC011691

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

Company & Directors' Information:- P C INDIA RESORTS PRIVATE LIMITED [Active] CIN = U55101MH2001PTC130996

Company & Directors' Information:- K B H RESORTS PRIVATE LIMITED [Strike Off] CIN = U55100PB2006PTC030411

Company & Directors' Information:- K C G RESORTS PRIVATE LIMITED [Active] CIN = U55101HR2009PTC039831

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

Company & Directors' Information:- H. S. RESORTS INDIA PRIVATE LIMITED [Active] CIN = U55101UR1999PTC024888

Company & Directors' Information:- D P S RESORTS PRIVATE LIMITED [Active] CIN = U55204UP2011PTC046717

Company & Directors' Information:- A S R RESORTS PRIVATE LIMITED [Active] CIN = U55101DL2006PTC155838

Company & Directors' Information:- R B RESORTS PRIVATE LIMITED [Active] CIN = U55101DL2011PTC214512

Company & Directors' Information:- M. M. RESORTS PRIVATE LIMITED [Under Process of Striking Off] CIN = U70109DL2013PTC259872

Company & Directors' Information:- O N S RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101PB2000PTC023508

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

Company & Directors' Information:- G K RESORTS PRIVATE LIMITED [Active] CIN = U55101DL1996PTC083411

Company & Directors' Information:- R S M RESORTS PRIVATE LIMITED [Active] CIN = U17291PB2008PTC031591

Company & Directors' Information:- I A M RESORTS PVT LTD [Strike Off] CIN = U55101CH2006PTC029845

Company & Directors' Information:- M. N. RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101DL2007PTC168774

Company & Directors' Information:- A D RESORTS PRIVATE LIMITED [Active] CIN = U55101DL2010PTC201715

Company & Directors' Information:- A TO Z RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101DL2011PTC227025

Company & Directors' Information:- A N A RESORTS PRIVATE LIMITED [Active] CIN = U55101DL2011PTC227078

Company & Directors' Information:- E & J GOLDEN INDIA PRIVATE LIMITED [Strike Off] CIN = U45400DL2012PTC241828

Company & Directors' Information:- JAIN HOTEL & RESORTS PRIVATE LIMITED [Active] CIN = U55101RJ2020PTC068163

Company & Directors' Information:- T N M RESORTS PRIVATE LIMITED [Active] CIN = U55101HR2021PTC093063

Company & Directors' Information:- GOLDEN HOTEL PRIVATE LIMITED [Strike Off] CIN = U55101MH1998PTC116254

Company & Directors' Information:- M C HOTEL AND RESORTS PRIVATE LIMITED [Strike Off] CIN = U55101KL2008PTC023505

Company & Directors' Information:- SUN INDIA CORPORATION PRIVATE LIMITED [Strike Off] CIN = U65991TN1943PTC000994

Company & Directors' Information:- HOTEL RESORTS PRIVATE LIMITED [Not available for efiling] CIN = U99999MH1971PLC015239

    W.A. No. 2144 of 2012

    Decided On, 24 April 2018

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE K.K. SASIDHARAN & THE HONOURABLE MR. JUSTICE P. VELMURUGAN

    For the Appellant: A. Sree Jayanthi, Spl. Govt Pleader. For the Respondents: A.L. Gandhimathi, Advocate.



Judgment Text

(Prayer: Appeal filed against the order passed by this Court dated 4.1.2011 passed in W.P.No.1744 of 2008.)

K.K. Sasidharan, J.

1. The respondent secured FL3 License under 3 Star Hotel category with effect from 12 December 1997 and carried on liquor sale. When the arrears of license fee was claimed, the respondent invented a novel device for avoiding payment, by contending that as per the proceedings dated 2 August 2005, the Tourism Department, Government of India, removed the name of the hotel from the 3 Star category notwithstanding the fact that there was no application submitted at any point of time to the Excise Licensing Authority for reclassification and issue another license. In short, the liability to pay the bar license fee for the period from 1997 to 2005 and subsequent period up to 2007-08 are disputed, on the basis of a communication dated 5 August 2015.

The facts:-

2. The respondent is a hotel situated at Mamallapuram. The respondent obtained FL3 License from the Excise Department, claiming that the Hotel is a 3 star category. The license granted during the excise year 1997-98 was renewed periodically. There was shortfall in the payment of license fee. When a demand was made to pay the arrears of license fee, the respondent contended that the 3 star classification expired on 12 December 2000. To substantiate this contention, the respondent produced a letter dated 2 August 2005 issued by the Tourism Department, informing the hotel that there was no renewal of 3 star category after 12 December 2000.

3. The demand for payment of arrears was quashed by the learned Single Judge. The order is under challenge in this intra court appeal.

Contentions :-

4. The learned Government Pleader contended that the respondent at all point of time maintained that the hotel is a 3 star category and got renewal of license. It was only when demand was made to clear the arrears, letter dated 2 August 2005 was produced to dispute the liability. The learned Government Pleader contended that at no point of time the respondent informed the licensing authority that the hotel is no more a star hotel and that an applicable license should be issued. The respondent is therefore liable to pay the arrears.

5. The learned Senior Counsel for the respondent contended that there was no renewal of 3 star category license beyond 12 December 2000. This fact was proved by the communication dated 2 August 2005. The respondent was therefore correct in contending that there was no liability to pay the license fee applicable to a 3 star hotel after 2000.

Analysis:-

6. The respondent was given FL3 license applicable to a 3 Star Hotel. We are now concerned with the arrears of license fee for the license period 2001-02 to 2007-08. The license fee for FL3 license at that point of time was Rs.3,00,000/-. The appellant paid only a sum of Rs.1,00,000/- and agreed to pay the balance fee. The license was periodically renewed with a condition to pay the arrears.

7. There was no application submitted by the respondent at any point of time to issue a lower category license, on the ground that the 3 star category was taken away by the Tourism Department.

8. In case there was no renewal of 3 star category after 12 December 2000, the respondent ought to have reported the matter to the Licensing Authority then and there. At least during the renewal time, the respondent must have reported the fact to the licensing authority.

9. The appellant for the first time by placing reliance on a letter dated 2 August 2005, claimed that there is no liability to pay the license fee treating it as a 3 Star Hotel.

10. The respondent no where pleaded that the liquor business was not conducted after 12 December 2000 as a 3 star category. It was only by letter dated 5 November 2005, the respondent informed the Licensing authority that there was no renewal of 3 Star Hotel license after 12 December 2000.

11. The license was granted under 3 Star Hotel category. The respondent conducted the liquor business as a 3 star hotel and continued the business. It was only during the fag end of the license period viz., 2005-06, the respondent informed the Licensing Authority that there was no renewal of 3 star category after 12 December 2000.

12. The Licensing Authority claimed license fee at the rate applicable for a 3 star hotel up to the license year 2007-08. There is no justification for claiming that rate after the license period 2005-06, in view of the fact that the respondent by letter dated 5 November 2005 informed the Licensing Authority that the 3 star license has been taken away.

13. The respondent is liable to pay the license fee payable for FL3 License up to the excise year 2005-06. There is no liability to pay the license fee at the rate applicable to the 3 star category beyond the Excise

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year 2005-06. DISPOSITION:- 14. The order dated 4 January 2011 is set aside. The Writ Petition in W.P.No.1744 of 2008 is allowed in part by quashing the impugned demand for the period beyond 2005-06. The respondent is directed to pay the differential license fee up to the excise year 2005-06 along with statutory interest, within a period of four weeks from the date of receipt of a copy of this judgment. 15. The intra court appeal is allowed as indicated above. No costs. Consequently, connected M.P.s, are closed.
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