Hotel, Bars and eating places will pay Annual Licence Price by June 1: Bombay HC [Read Order]

Licence Price - Bombay - Hotel - Bars - Taxscan

The Bombay High Court on Tuesday prolonged the deadline for renewal of the annual licence price for the allowed bars Licence holders in Maharashtra until June 1 amid the coronavirus illness (Covid-19) outbreak, which is inflicting havoc to financial actions throughout the nation.

The order came on a petition filed by Hotel and Restaurant Association Western India, challenging a notification issued under provisions of the Maharashtra Portable Liquor (Periodicity and Fees for Grant, Renewal or Continuance of a Licences) Rules, 1996, by which annual fees for this year for FL-III license was enhanced by 15℅.

On March 26, the state excise division had issued around permitting allow bar licence holders to pay the hiked licence price in three instalments — 25% by June 30, one other 25% by September 30 and the remaining 50% by December 31, whereas taking into consideration their Covid-19 associated enterprise disruptions.

After members of the petitioner association sought a rollback of the enhanced fees, another circular was issued on April 13, giving them an option of paying at pre-revised rates, on the condition that they shall pay the entire amount by April 30.

However, the affiliation members cited their incapability to pay even the pre-revised charge as a result of the viral outbreak after the excise division authorities determined to roll again the 15% hike and gave them a choice on April 13 to pay your complete quantity by April 30.

Additional government pleader Abbey Patki opposed the prayer. He submitted that the licence holders had been given an option to pay at pre-revised rates in one instalment or at revised rates in three instalments and they did not deserve any further extension.

The single-judge bench of Justice N.J. Jamadar noted that in view of the Covid-19 pandemic, businesses have come to a standstill and the members of the association were no exception. The court accepted the affiliation members’ plea and allowed them to pay their annual licence renewal price on the pre-revised charge by June 1.

“Since the government has graciously permitted the licence holders to pay the fees at pre-revised rates, on account of the exigency of the situation, an extension till June 1, 2020, would not cause any serious prejudice to the state,” said Justice Jamadar.

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