HOTEL HINDUSTAN INTERNATIONAL Vs. STATE OF U P

JUDGEMENT

(1.) By means of the present writ petition, filed under Article 226 of the Constitution of India, petitioner claimed the following relief's :

(2.) Petitioner runs a hotel with a restaurant and bar. Petitioner had a bar licence in Form FL-7A. Vide Government Order dated 10.01.1995 petitioner was required to obtain a composite licence in Form FL-6A and accordingly, a demand notice dated 31.01.1995 was issued by District Excise Officer, Varanasi requiring the petitioner to deposit the balance amount of Rs. 3 lacs, in as much as a sum of Rs. 3 lacs had already been deposited. Petitioner filed writ petition No. 294 of 1995, Hotel Hindustan International v. State of U.P. and Ors., in which Government Order dated 10.01.1995 and demand notice dated 31.01.1995 were challenged. It may be mentioned here that by amendment dated 25.06.1994 2 new category of licence were introduced, namely, composite licence in Form FL-6 and composite licence in Form FL-6A, Form FL-6 was for 1, 2 and 3 Star hotels and Form FL-6A was for 4 and 5 Star hotels for sale of liquor in the premises of the hotel. Form FL 7-A was retained by the aforesaid amendment for consumption of liquor in the premises of restaurant of 4 and 5 Star hotel. In the said writ petition, claim of the petitioner was that since it was only selling/serving the liquor in the premises of the restaurant, no composite licence was required in Form FL-6A and it could not be compelled to take a composite licence in Form F1.-6A for selling/serving the liquor in the hotel premises. The writ petition was dismissed on 09.10.2003 by the Division Bench of this Court. It may be mentioned here that in the aforesaid writ petition, petitioner claimed that it was a 4 Star hotel. In the order dated 09.10.2003 this Court has mentioned that the petitioner is 4 Star hotel. Petitioner was also having a licence in FL 7-A, which was for the consumption of liquor in the premises of restaurant of 4 or 5 Star hotel. At no stage, petitioner had disputed that its hotel was not of 4 Star hotel. To the contrary, in the writ petition No. 294 of 1995 in para 1 it has been admitted that the petitioner is 4 Star hotel. After the dismissal of the writ petition, demand notice dated 16.10.2003 has been issued by the District Excise Officer, Varanasi demanding a sum of Rs. 20,40,000/-differential amount of licence fee for the period 1994-95 to 2002-03, It appears that the petitioner had paid licence fee as applicable to FL-7A while the petitioner has been held liable to obtain a composite licence in Form FL-6 and was also liable to pay annual licence fee accordingly. Thus, the demand of balance amount had been raised. Petitioner filed appeal before the Excise Commissioner. In the appeal petitioner alleged that 4 Star status was granted to the petitioner hotel from 14.07.1988 for a period of three years by Hotel and Restaurant Approval and Classification Committee, Department of Tourism. Government of India and, thereafter, inspite of their best efforts they could not fulfill the new guidelines of the Department of Tourism, hence they could not apply for the renewal of classification, A certificate of Department of Tourism dated 02.11.2003 has been annexed showing that hotel has been unclassified w.e.f. 13.07.1991. In para 3 it has been stated that since the hotel of the petitioner ceased to be classified as 4 Star hotel w.e.f. 13.07.1991, fee was to be paid according to the rates applicable for unclassified hotel on the basis of number of rooms. Additional Excise Commissioner (Administration) , appellate authority vide order dated 08.01.2004 dismissed the appeal. Thereafter, the petitioner filed revision before the State Government. Principal Secretary vide its order dated 07.05.2004 rejected the revision by the impugned order.

(3.) Heard Sri Bharatji Agrawal, learned Senior Advocate, assisted by Sri Mukesh Prasad, learned Counsel for the petitioner and Sri U.K. Pandey, learned Standing Counsel.