IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 4TH JANUARY 2010 / 14TH POUSHA 1931 WP(C).No. 35493 of 2009(F) -------------------------- PETITIONER --------------- THE TRAVANCORE RUBBER & TEA CO. LTD., "PLANTATION HOUSE", PATTOM PALACE.P.O. TRIVANDRUM-695004, REPRESENTED BY ITS C.E.O. MR.SIVARAMAKRISHNA SARMA. BY ADV. SRI.JOSEPH KODIANTHARA SRI.TERRY V.JAMES SRI.B.J.JOHN PRAKASH RESPONDENTS: --------------- 1. ASST. COMMISSIONER (ASSMT.) SPECIAL CIRCLE, COMMERCIAL TAXES, TRIVANDRUM. 2. TAHSILDAR (RR) TRIVANDRUM. 3. STATE OF KERALA, REPRESENTED BY THE SECRETARY (TAXES), SECRETARIAT, TRIVANDRUM. BY GOVERNMENT PLEADER ADV. MR. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04/01/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 35493 OF 2009 ......................................................................... Dated this the 4th January , 2010 J U D G M E N T The grievance projected in the Writ Petition is mainly against Ext. P1 seeking to realise 'collection charges' in respect of realisation of the amount stated as due towards the tax liability under the KGST and AIT Acts, invoking the provisions under the Kerala Revenue Recovery Act. 2. The learned Counsel for the petitioner submits that the proceedings taken by the departmental authorities were subjected to challenge by way of various proceedings and as and when the matter was got finalised, the liability, as refixed was cleared in toto; under which circumstance, no amount is liable to be paid towards 'collection charges'. Support is sought to be drawn from the interim orders passed by this Court and also by the statutory authorities, whereby the proceedings taken to the contrary were intercepted so as to facilitate final adjudication in W.P.(C) No. 35493 OF 2009 2 tune with the relevant provisions of law. The learned Counsel also placed reliance on the decision rendered by this Court in Malabar Organics Ltd. vs. State of Kerala [2009(4) KLT 328]. After formulating the relevant questions of law, the same were answered by the Division Bench of this Court, holding that there was no liability to pay the collection or service charges, in case the defaulter paid the arrears directly to Institution, pursuant only to a notice under Section 7 or S.34 of the Revenue Recovery Act. It was categorically made clear that the liability to pay such charges would arise only in cases where further steps of attachment or sale are taken. However, taking note of the rule position, as embodied under Rule 4, it was also observed that in cases where the machinery under the Revenue Recovery Act is made to run, the actual expense to the extent of 1% is permitted to be realised in appropriate cases. 3. In the above facts and circumstances, Ext.P1 notice issued by the respondents seeking to realise various amounts as 'collection charges', ranging from 5% to 7.5% in respect of different transactions and different periods is not correct or W.P.(C) No. 35493 OF 2009 3 sustainable. Hence the same is hereby set aside. 4. The second respondent is directed to re-consider the actual extent of liability in this regard, in tune with the law declared by this Court as per the decision cited supra. The proceedings in this regard shall be finalised as expeditiously as possible, at any rate within three months, of course, after giving an opportunity of hearing to the petitioner. The Writ Petition is allowed as above. No cost. P.R. RAMACHANDRA MENON, JUDGE. lk