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M/s. Vrishali Hotels Pvt. Ltd. Versus The State of Maharashtra & Another

2017 (2) TMI 42 - BOMBAY HIGH COURT

Exemption in luxury and sales tax as granted by the Government Resolution dated 8th July, 1999 - the petitioner holds, controls and manages a tourism unit in 'B' class category - whether the petitioner would be classified under 'B' class category or 'A' class category? - Held that: - The units were categorized on the basis of their investment and that is how the ceiling limit in regard to exemption was fixed. There has to be, therefore, a correlation as between the location, the investment a .....

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n placed on record for the classification or distinction that is made and it entirely being a policy decision, we see no reason to grant any relief to the petitioner - petition dismissed - decided against petitioner. - Writ Petition No. 2205 of 2007 - Dated:- 17-1-2017 - S. C. Dharmadhikari And B. P. Colabawalla, JJ. Mr. Amit Borkar for the Petitioner Ms. Aparna Vhatkar, AGP, Mr. S.P. Bharti for the Respondent ORDER P. C. 1. The petitioner claims a declaration from this Court that it is eligible .....

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e founded on the petitioner being a private limited company and set up with an object of establishing and managing hotels, restaurants, cafes, bars etc. The State of Maharashtra introduced a Scheme in the year 1999 styled as New Package Scheme of Incentives for Tourism Projects, 1999. The Government, therefore, issued a Resolution dated 8th July, 1999. According to the petitioner, the object of this Resolution was to make available all fiscal and non fiscal incentives to tourism industry. The fu .....

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t in 'B' class category. The registration, therefore, enabled the petitioner to claim exemption from paying sales tax on the manufactured goods and liquor as per the Bombay Sales Tax Act, 1959 and luxury tax as per the provisions of The Maharashtra Tax on Luxuries Act, 1987. The exemption is valid from 1st January, 2000 to 31st December, 2006 for seven years. The exemption, therefore, from sales tax and luxury tax is as per the details set out in paragraph 5 of the petition. There is, of .....

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hat the petitioner's case is also covered by the Tourism Incentive Scheme, 1999, under which the petitioner had obtained the registration dated 24th September, 2004. Once that fact and the new Resolution would coincide, all that the petitioner desired was that being a 'B' class tourism unit, it cannot be denied the benefit and in terms of the 2004 Resolution. 6. After setting out how the petitioner being a 'B' class unit requires and very badly the same benefit and exemption, .....

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petition in that regard. 8. Then, the petitioner's representation dated 10th March, 2006, copy of which is Annexure-C to the petition is relied upon. The clarification was also sought by the petitioner vide Annexure-D. However, finding no response, it is urged that this Court may be pleased to grant a declaration and in terms of the prayers of this petition. 9. There is an affidavit-in-reply filed by the second respondent to this petition and which states that it is true that Tourism Incent .....

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pectation. The petitioner is entitled to take the benefit of the ceiling limit in respect of exemption from sales tax and luxury tax, but as per the 1993 Scheme, it was required to avail of the same within the stipulated period. There is no question of any injustice for the simple reason that class 'A' tourism units stand on a completely different footing. The classification was made considering various factors and there is now a policy decision taken. The petitioner is not similarly sit .....

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uced and brought in. The Resolution sets out that tourism projects in the private sector, State public sector / joint sector, cooperative sector but not in Central public sector will be considered for incentives. The eligibility criteria is set out in extenso together with the details of the implementing agencies. There are some vital definitions so as to explain the criteria of eligibility and elaborate it further. Equally the incentives are set out in paragraph 5 of the Government Resolution. .....

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incentives and the period etc. 12. The New Tourism Policy, 1999, which was promulgated resulted in another Package Scheme of Incentives for Tourism Project being introduced and the Government Resolution of 1999 dated 8th July, 1999, is to that effect. Though the objectives are more or less similar, but this Government Resolution came to be introduced so as to give effect to the new Tourism Policy. The boost to tourism by attracting higher investment in areas with tourism potential and which wou .....

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licy were extended and from three years to nine years maximum. 14. As far as the impugned Resolution is concerned, what we have found therefrom is that, that is styled as Tourism Encouragement Policy, 1999 and for increasing the benefits which were admissible under the Package Scheme of Incentives. The Package Scheme of Incentives has been extended as noted above. However, what the petitioner's grievance is and as projected in the representation that the petitioner has set up the unit and wh .....

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s invited to Annexure- A of the Government Resolution dated 8th July, 1999. These Annexures state that the hotel projects should have facilities expected of the Establishments in one to five star category or non star category according to the guidelines of the Department of Tourism. The hotels of the Department of Tourism, Government of India are taken as the basis for the purposes of facilities that have to be installed. There have to be minimum twenty rooms, a public toilet shall also be provi .....

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ar as Konkan Division is concerned, namely, Mumbai Suburban District, the entire area is styled as Group 'A'. Thane, it is Group 'B' and Group 'C' and encompassing Navi Mumbai, Thane, Ulhasnagar and Kalyan. In District Raigad, Alibag and Panvel would cover the entire District, except the area in Column No.4. Thus, as far as Pune Division is concerned, Kolhapur Municipal area falls in Group 'B'. Thus, the entire District except the area within Kolhapur Municipal li .....

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