HC extends deadline to pay liquor licence fees for hotels, bars and restaurants till June 1

In a reprieve for hotels, bars and restaurants serving foreign liquor, the Bombay high court on Tuesday extended the deadline for paying the annual fees for getting

In a reprieve for hotels, bars and restaurants serving foreign liquor, the Bombay high court on Tuesday extended the deadline for paying the annual fees for getting their FL-III licences renewed till June 1.

HT Image

FL-III is a licence needed to serve imported and Indian-made foreign liquor at hotels, bars and restaurants.

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

In the backdrop of the nationwide lockdown, a circular was issued by the state excise department on March 26, allowing the licence holders to pay the enhanced fees in three instalments - 25% by June 30, 25% by September 30 and the remaining 50% by December 31.

After members of the petitioner association sought 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.

It was then argued on behalf of the association that as the lockdown had been extended, members have not been able to do any business and therefore the condition to pay the entire licence fees by April 30 operated onerously against them. The court was urged to extend the deadline for paying the fees at the pre-revised rates.

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.

Justice NJ Jamadar, however, noted that in view of the Covid-19 pandemic, businesses have come to a standstill and the members of the association were no exception. “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.

Although the judge refused to keep it open for the association to move the court and seek a further extension for payment if the lockdown was extended. Jamadar said it would be unreasonable to grant such liberty to the petitioner body.