(1.) THIS writ appeal is directed against the judgment of the learned single judge in W.P.Nol980 of 1993. The appellant is an association representing the hotels and restaurants. In the writ petition, the appellant challenged the notification dated 22.7.92 issued by the Government by which the Government enhanced privilege fee in respect of FL.3 Licence granted to star hotels. The appellant has also challenged a circular issued by the Excise Department to the Collectors whereby the Collectors were directed to take suitable action to recover the enhanced privilege fee. The appellant contended before the learned single judge that the Government have no power or jurisdiction to enhance the privilege/licence fee for the year 1992-93, as the licence had already been issued to the licensees on the basis of the then existing privilege fee and the enhancement of the fee during the middle of the year amounts to breach of contract and is an attempt to collect privilege fee with retrospective effect. It is also alleged that for augmenting the excess revenue, the State should have levied tax and the enhancement of the fee was arbitrary and illegal. The appellant had also contended that the impugned order was in the nature of levying tax and therefore it was void and unenforceable. It was contended by the appellant that income derived from the Star Hotel should not have been the basis for fixing the privilege fee. The appellant further contented that the impugned orders were not in tune with the object of the statute and the object of the statute being to regulate the consumption of liquor, the same cannot be misused by the respondents for augmenting the revenue of the state. The administrative orders passed by the respondents to increase privilege fee exorbitantly was ultra vires the Act and the Constitution.
(2.) THE learned single judge rejected these contentions and held that the impugned order was not violative of the provisions contained in the Constitution and that the fixation of privilege fee at different rates for different types of star hotels, was not violative of the principle of equality under Article 14 of the Constitution as the basis of the classification was reasonable. Aggrieved by the same, the present writ appeal is filed.
(3.) IN the instant case, there is only enhancement of the privilege fee fixed by the Government while granting the FL3 licence. As the right to sell liquor being the exclusive privilege of the State, the State Government have got the authority to fix the privilege fee. Under section 17-D of the Prohibition Act, 1937 , the State Government can levy a sum of fee both in consideration of the grant of any exclusive or other privilege under section 17-C and also a fee on licences granted under Section 17-C. The provision contained in Section 17 of the Act gives power to the state Government to fix the privilege fee. We do not think that the contention of the appellant that it partakes the character of fee and there should be fulfilment of the condition that the Government should confer some benefit or service for the money collected, is acceptable.