IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.VINOD CHANDRAN TUESDAY, THE 6TH DECEMBER 2011 / 15TH AGRAHAYANA 1933 WP(C).No. 9088 of 2008(F) ------------------------- PETITIONER(S): ------------------------- M/S.SPENCER'S RETAIL LTD. GREAT WHOLE SALE CLUB,SPENCER JN, THIRUVANANTHAPURAM REP. BY ITS MANAGER DEEPA VARGHESE. BY ADV. SRI.A.KUMAR RESPONDENT(S): --------------------------- 1. STATE OF KERALA REPRESENTED BY THE SECRETARY MINISTRY OF FINANCE,GOVT,SECRETARIAT, TRIVANDRUM. 2. THE DEPUTY COMMISSIONER (APPEALS) THIRUVANANTHAPURAM. 3. THE ASST. COMMISSIONER(AUDIT ASSMT) COMMERCIAL TAX DEPARTMENT,THIRUVANANTHAPURAM. 4. THE INSPECTING ASST COMMISSIONER THIRUVNANTHAPURAM. BY GOVT.PLEADER SMT. P MAYA THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/12/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 9088 of 2008(F) APPENDIX: PETITIONER'S EXHIBITS: EXT.P1: TRUE COPY OF THE ASSESSMENT ORDER (KGST) DTD. 2.1.2008. EXT.P2: TRUE COPY OF THE ORDER OF THE DY. COMMISSIONER OF APPEALS DT. 3.3.2008. EXT.P3: TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED NIL. RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.A. TO JUDGE. K.VINOD CHANDRAN,J. --------------------------------------- W.P.(C). No. 9088 of 2008 ---------------------------------------- Dated this the 6th day of December, 2011 JUDGMENT The petitioner challenges the levy of collection charges in pursuance to the recovery of sales tax dues under the Revenue Recovery Act. It is fairly submitted that a learned Single Judge of this Court had in the matter of collection charges, in addition to the recovery of dues from financial institutions notified under Section 71 of Revenue Recovery Act, the challenge against the same was upheld and the rates were brought down to 1%. The said issue is now pending before the Supreme Court in SLPs filed by various financial institutions. The challenge in the present writ petition, it is submitted by the counsel for the petitioner, is that so far as the recovery said to be made against the petitioner is with respect to sales tax dues, there is no provision under the Revenue Recovery Act to enable recovery in the nature of collection charges. The petitioner's counsel contends that his case stands on two grounds, that there is no provision for collecting collection charges for recovery of dues to the W.P.C. No. 9088 of 2008 -2- Government and if at all it cannot be at the rate of 5%. In any event it is submitted that the orders of this Court negativing the claim made by the State is pending before the Supreme Court in number of SLPs. Since the interim stay granted in the above writ petition had been extended for various periods and eventually until further orders, I feel that the interim stay granted in the matter can be made absolute, but however, subject to the orders of the Honourable Supreme Court regarding the issue of collection charges, specifically collection with respect to recovery of collection charges with respect to recovery of sales tax dues. The petitioner shall abide by the orders of Supreme Court in this regard and shall pay the collection charges without demurr in the event of the Supreme Court upholding the same. If the petitioner fails to pay the amounts even after the orders of the Supreme Court the State shall be entitled to recover the same in accordance with law. The writ petition is disposed off as above. K.VINOD CHANDRAN, JUDGE. W.P.C. No. 9088 of 2008 -3- Kp/-