HOTEL SANGAM Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The appellants enjoyed the privilege of FL3 licence continuously for years together and when demand was made to pay the privilege fee, they have filed Writ Petitions challenging the levy, primarily on the ground that four star gradation and three star gradation were not renewed periodically and as such, there is no liability to pay the fee as claimed by the Excise Department.

(2.) The appellant established a Hotel in the name and style of 'Hotel Sangam' at Collector's Office Road, Tiruchirappalli. The Hotel was classified as a four star hotel for a period of three years with effect from 16 November, 1993. The appellant obtained FL3 licence based on the four star classification. The Licensing Authority issued the licence and it was renewed periodically. The Licensing Authority made it clear that the renewal was subject to the condition that the licensee shall pay the difference of privilege fee. In order to renew the FL3 licence further, the Excise Department demanded the arrears of privilege fee. The demand was challenged in W.P.(MD)No.1080 of 2008.

(3.) The appellant established a hotel at Trichy Road, Thanjavur. The Hotel was not having any star classification initially. The appellant obtained 3 star classification with effect from 29 January, 2001. The classification was valid for a period of four years. The appellant obtained FL3 licence on the basis of classification. The licence was renewed periodically subject to payment of the applicable privilege fee. Since the correct amount was not paid while renewing the licence, it was renewed with a condition that the appellant is liable to pay the differential privilege fee. Finally, the Excise Department demanded the arrears of licence fee. The demand was challenged in W.P.(MD)No.1487 of 2008.