COMMISSIONER OF PROHIBITION AND EXCISE, CHEPAUK, CHENNAI Vs. GOLDEN SUN HOTEL BEACH RESORTS REP BY ITS DIRECTOR, R L JAIN

JUDGEMENT

(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.

(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.