DELHI RACE CLUB LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) . The Petitioner, Delhi Race Club Limited, was initially a Club formed in 1926 known as the Delhi Race Club. It was subsequently registered as a Company with limited liability taking over the assets and liabilities of the erstwhile club in 1940. The Petitioner was established with the primary object of encouraging Indian bred horses and Indian Jockies and also to confer upon horse racing the status of a game/sport.

(2.) . In this Petition we are concerned with the challenge to :- (1) Notification dated 19th October, 1984 whereby the Central Government extended the Mysore Race Course Licensing Act 1952 (hereinafter referred to as the Act) to the Union Territory of Delhi; and (2) the Notification dated 7th March, 2001 issued by the Lt. Governor in purported exercise of Section 2 of the Mysore Race Course Licensing Act, 1952 and (3) Delhi Race Course Licensing Rules 2001 and (4) the demands dated 31.1.2002 whereby the Respondent No.3 (Commissioner of Excise, Entertainment & Luxury Tax, New Delhi) has called upon the Petitioner to pay the enhanced/amended Licence Fee of Rs.17,80,000/- for the year 2001-2002 and Rs.18,00,000/- for the year 2002-2003.

(3.) . By the first Notification i.e. the Notification dated 19th October, 1984 the Central Government in exercise of the powers conferred on it by Section 2 of the Union Territories (Laws) Act, 1950 extended to the Union Territory of Delhi, the Mysore Race Courses Licensing Act, 1952 as in force in the State of Karnataka on the date of the said notification subject to the modifications mentioned therein. The said Act as extended to Union territory of Delhi provided for licences being granted by the Government for horse racing and also provided that a Licence Fee be charged in respect of the licence so granted. However, no quantum of the fee was specified in the said Act as extended to Delhi. Under Section 11 of the said Act as extended to Delhi the Government had the power to make rules inter alia providing for the fees payable for such licences. Accordingly, on 1st March, 1985 by a notification the Administrator of the Union territory of Delhi notified the Rules thereunder which were known as the Delhi Race Course Licensing Rules 1985 (hereinafter referred to as the said Licensing Rules). Rule 6 of the said Delhi Licensing Rules inter alia provided that the licence fee for horse racing on the race course (i.e., venue racing) shall be a sum of Rs.2000/- per race day on which the race is held and that the licence fee for arranging for wagering or betting on a horse race run on any other race course (i.e., inter-venue racing) shall be a sum of Rs.500/- per race day on which the race is held. The second notification i.e. The Notification dated 7th March, 2001 in effect amended the aforesaid Rule 6 of the said Delhi Licensing Rules and, inter alia, the licence fee has been enhanced from Rs. 2000/- to Rs. 20,000/- per day on which the race is held for venue races and from Rs.500/- to Rs.5000/- per day on which the race is held for inter-venue races. The demand dated 31st January, 2002 is based on the enhanced licence fee as per the second notification of 7th March, 2001.