HOTEL GOLDEN PALACE Vs. COMMISSIONER OF PROHIBITION AND EXCISE, CHEPAUK; DISTRICT COLLECTOR, NAMAKKAL DISTRICT; ASSISTANT COMMISSIONER (EXCISE), OFFICE OF DISTRICT COLLECTORATE

JUDGEMENT

(1.) The petitioner has filed the above Writ Petition to issue a writ of certiorarified mandamus to call for the records on the file of the 1st respondent dated 22.12.201 and to quash the same and consequently, to direct the 3rd respondent to refund the excess privilege amount collected from the petitioner from the 2005-2006 to till date and collect the privilege fee applicable non-star status hotels in respect of the license in FL3 No.1/2004-2005.

(2.) The petitioner had started a hotel business in the name and style of Hotel Golden Palace at Trichy Road, Namakkal and originally had obtained Three Star status for the said Hotel from the Regional Director of India Tourism, Chennai and therefore, had to mandatorily have a bar room in the Hotel. Hence, the petitioner applied for FL-3 license to the 1st respondent, which was granted to them. In view of the same, the petitioner had to pay a higher privilege fee than that was paid by the other regular bars in the other Hotels. After the expiry of the FL-3 license issued in the year 2000, the petitioner did not renew the license. Therefore, the license had expired and thereafter, the petitioner had once again applied for FL-3 license, which was issued by the 1st respondent on 30.06.2004. The privilege amount that was to be paid by the petitioner was Rs.2,00,000/-, apart from the other license and renewal fees.

(3.) Since the hotel business was running at a loss, the petitioner sought to withdraw the Three Star status to the petitioner and accordingly, applied to the Regional Director, India Tourism stating that they do not wish to seek for re-classification of their Hotel as Three Star hotel. The Regional Director had issued a letter dated 11.05.2005 for cancelling the Three Star classification issued to the petitioner and also issued a certificate on 10.10.2006 clarifying that the petitioner is not a Three Star Hotel classified by the Department of Tourism with effect from 07.03.2005. After the withdrawal of the status, the petitioner was required to pay a sum of Rs.1,00,000/- as privilege fee as applicable to that year and when the petitioner had approached the 3rd respondent for reducing the privilege fee amount, the 3rd respondent had directed the petitioner to pay the entire privilege amount that was paid for Three Star Hotels under a threat of cancellation of license.