2014 (11) TMI 453 - HC - VAT and Sales Tax

Validity of Order passed under Abkari Policy - Order to to close down all Bar Hotels in Kerala, except those which were having Five Star and above classification - Assessee upgraded from three star Hotel to Five Star delux hotel - Held that - Ext.P17 order dated 27.8.2014 was to be given effect on the expiry of 15 days from the date of said order. But the fact remains that, Ext.P17 order has not come into force so far. The issue was taken up before the Apex Court, when the proceedings have been finalized observing that the High Court of Kerala has to take a final decision, also with reference to the Abkari Policy of the State, simultaneously granting interim stay, till such final decision is taken, thus enabling the concerned FL-3 licence holders to continue to operate the Bar . It is conceded by both the sides that, final verdict is still to be passed by this Court and the licensees having FL-3 licence are still running the concerned establishments. Petitioner though was having three star status earlier, has now been recognized as a Five Star Deluxe Hotel, vide Ext.P18 passed by the competent authority of the Government of India, Ministry of Tourism. This being the position, the submission made by the petitioner vide Ext.P19 before the first respondent is liable to be considered and appropriate orders are to be passed, more so since, the petitioner no longer continues to be an FL-3 licence holder, having conferred Five Star Deluxe status as per Ext.P18. there will be a direction to the 1st respondent to consider Ext.P19 and pass appropriate orders in accordance with law, also in the light of the above observations which shall be done after giving an opportunity of hearing to the petitioner at the earliest, at any rate, within one month from the date of receipt of a copy of this judgment. Status quo as on date will continue till such time - Petition disposed of.

Summary

Issues:
1. Classification of the hotel as 'Five Star Deluxe'
2. Impact of Ext.P17 order on FL-3 license
3. Consideration of petitioner's status and appropriate orders

Classification of the hotel as 'Five Star Deluxe':
The petitioner's hotel, previously classified as a 'Three Star Hotel,' applied for an upgrade to 'Five Star Deluxe.' After an inspection by the competent authority under the Union of India, the hotel's status was elevated to 'Five Star Deluxe' as per Ext.P18 proceedings. The classification was valid from 29.9.2014 to 28.09.2019. The petitioner sought to continue serving liquor based on this new classification.

Impact of Ext.P17 order on FL-3 license:
The Commissioner of Excise issued Ext.P17 order as part of the 'Abkari Policy 2014-2015,' directing the closure of all Bar Hotels in Kerala except those classified as 'Five Star and above.' The petitioner expressed concern that Ext.P17 might lead to the closure of their hotel despite the upgraded classification. However, the Ext.P17 order had not yet come into force, and the matter was brought before the High Court for a final decision.

Consideration of petitioner's status and appropriate orders:
The High Court acknowledged the petitioner's new classification as a 'Five Star Deluxe' hotel and directed the 1st respondent to consider the petitioner's submission (Ext.P19) and pass appropriate orders. The court emphasized that since the petitioner no longer held an FL-3 license due to the upgraded status, the petitioner's status quo would be maintained until a decision was made. The 1st respondent was instructed to take action within one month of the judgment, ensuring a fair hearing for the petitioner.

In conclusion, the High Court disposed of the writ petition, instructing the petitioner to provide a copy of the judgment and the writ petition to the 1st respondent for further necessary steps.