Case Note & Summary
The petitioners, Advani Hotels & Resorts India Ltd. and its Chairman, operated an onshore casino named 'Goa Nugget' at Caravela Beach Resort in Goa under a licence initially issued on 12/02/1993 under Section 13A of the Goa, Daman & Diu Public Gambling Act, 1976. The licence was renewed periodically, with the last renewal from 25/04/2008 to 24/04/2013. On 25/05/2012, the Government of Goa issued a notification under Section 13A read with Section 21 of the General Clauses Act, amending the original notification and re-fixing recurring licence fees for electronic amusement/slot machines in five star hotels. The respondents issued a show cause notice to the petitioners for recovery of fees based on this amended notification, followed by an order and demand notice. The petitioners challenged these actions in the High Court. The court held that the amended notification did not have retrospective effect and could not be applied to licences already granted and renewed prior to its issuance. The show cause notice and demand were based on a misinterpretation and were quashed. The court allowed the petition, setting aside the impugned order and demand notice.
Headnote
A) Interpretation of Statutes - Retrospective Operation - Notification Amending Licence Fees - Section 13A of the Goa, Daman & Diu Public Gambling Act, 1976 read with Section 21 of the General Clauses Act, 1897 - The court considered whether a notification enhancing licence fees could be applied to a licence already granted and renewed before the notification. Held that the notification did not expressly or impliedly have retrospective effect and could not be applied to existing licences. The demand for enhanced fees was quashed. (Paras 2-5)
B) Administrative Law - Natural Justice - Show Cause Notice - Recovery of Fees - The court examined whether the show cause notice and subsequent order for recovery of fees were valid. Held that the notice was based on a misinterpretation of the notification and the order was without jurisdiction. The demand notice was set aside. (Paras 3-6)
Issue of Consideration
Whether the amended notification dated 25/05/2012 fixing enhanced recurring licence fees for electronic amusement/slot machines in five star hotels could be applied to the petitioners' existing licence which was renewed prior to the notification, and whether the demand for recovery of fees based on such notification was valid.
Final Decision
The High Court allowed the writ petition, quashing the impugned order and demand notice for recovery of enhanced licence fees.
Law Points
- Interpretation of statutes
- Retrospective operation of notifications
- Section 13A of the Goa
- Daman & Diu Public Gambling Act
- 1976
- Section 21 of the General Clauses Act
- 1897
- Licence fees enhancement
- Natural justice
Case Details
WRIT PETITION NO.1126 OF 2017
S. C. GUPTE, NUTAN D. SARDESSAI
Mr. Nitin Sardessai, Senior Advocate with Mr. Kaif Noorani for the Petitioners; Mr. D. Pangam, Advocate General with Mr. Pravin Faldessai, Additional Government Advocate for the Respondents
Advani Hotels & Resorts India Ltd. and Mr. Sunder Gurdas Advani
The State of Goa and The Under Secretary (Home)
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Nature of Litigation
Writ petition challenging an order and demand notice for recovery of enhanced licence fees for running an onshore casino.
Remedy Sought
Quashing of the show cause notice, order, and demand notice for recovery of fees.
Filing Reason
The petitioners were issued a show cause notice and demand for enhanced licence fees based on a notification dated 25/05/2012, which they contended was not applicable to their existing licence.
Issues
Whether the amended notification dated 25/05/2012 fixing enhanced recurring licence fees could be applied to the petitioners' existing licence which was renewed prior to the notification.
Whether the demand for recovery of fees based on such notification was valid.
Submissions/Arguments
The petitioners argued that the amended notification did not have retrospective effect and could not apply to licences already granted and renewed before its issuance.
The respondents contended that the notification was applicable and the demand was valid.
Ratio Decidendi
A notification amending licence fees under Section 13A of the Goa, Daman & Diu Public Gambling Act, 1976 does not have retrospective effect unless expressly or by necessary implication provided. The amended notification dated 25/05/2012 could not be applied to licences already granted and renewed prior to its issuance. The demand for enhanced fees based on such notification was without jurisdiction.
Judgment Excerpts
This writ petition is filed by the petitioners who run an onshore casino. The petition challenges an order passed by the Under Secretary (Home) of the Government of Goa in pursuance of a show cause notice issued to the petitioners for recovery of fees for running of the casino and a demand notice issued to the petitioners in pursuance of such order.
The notification, inter alia, required a licensee of electronic amusement/slot machines in five star hotels to pay enhanced recurring licence fees.
Procedural History
The petitioners were issued a show cause notice for recovery of enhanced licence fees based on a notification dated 25/05/2012. An order was passed by the Under Secretary (Home) and a demand notice was issued. The petitioners filed a writ petition in the High Court of Bombay at Goa challenging these actions.
Acts & Sections
- Goa, Daman & Diu Public Gambling Act, 1976: 13A
- General Clauses Act, 1897: 21
