IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR THURSDAY, THE 26TH JUNE 2008 / 5TH ASHADHA 1930 WP(C).No. 7368 of 2006(B) ------------------------- PETITIONERS: ----------------- 1. K.CHANDRAN, S/O.KUNJUNNI NAIR, ELAYIDATHU HOUSE, PADIVATTOM, ERNAKULAM. POWER ATTORNEY HOLDER OF CHANDRASEKHARAN, (LECENCEE OF FL 1-113/2000-2001 EXCISE RANGE, ERNAKULAM). 2. CHANDRASEKHARAN, S/O.PADMANABHAN, (LICENCEE OF FL 1-113/2000-2001 EXCISE RANGE, ERNAKULAM). KOMANA HOUSE, KANAYANNUR TALUK. BY ADV. SRI.C.N.PRABHAKARAN SRI.C.R.VINOD KUMAR RESPONDENTS: ------------------ 1. THE STATE OF KERALA, REP. BY SECRETARY TO GOVERNMENT, REVENUE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE DISTRICT COLLECTOR, CIVIL STATION, KAKKANAD, ERNAKULAM. 3. THE ASST. EXCISE COMMISSIONER, ERNAKULAM. 4. THE CIRCLE INSPECTOR, EXCISE RANGE OFFICE, ERNAKULAM. 5. THE DEPUTY TAHSILDAR, REVENUE RECOVERY, KANAYANNUR TALUK. WP(C).No. 7368 of 2006 6. THE VILLAGE OFFICER, EDAPPALLY SOUTH VILLAGE. 7. THE SALES TAX OFFICER, 2ND CIRCLE, PALARIVATTOM, ERNAKULAM. 8. THE SALES TAX OFFICER, 2ND CIRCLE, KALAMASSERY, PALARIVATTOM. BY GOVERNMENT PLEADER SRI. TEK CHAND THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 26/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 7368 of 2006 APPENDIX PETITIONERS' EXHIBITS EXT.P1: COPY OF THE LICENCE NO.21/2000-01 DTD. 1.6.2000 ISSUED BY THE ASST. EXCISE COMMISSIONER. EXT.P2: COPY OF THE ASSESSMENT NO.A.900/2000 FOR THE PERIOD FROM 31.8.2000 TO 28.10.2000. EXT.P3: COPY OF FROM NO.13 DEMAND NOTICE ISSUED TO THE PETITIONERS BY R7. EXT.P4: COPY OF THE RECOVERY MAHAZAR DTD. 7.2.2001 PREPARED BY RESPONDENTS. EXT.P5: COPY OF THE MAHAZAR PREPARED FOR THE MATERIALS FOR TRANSFERRING THE SAME TO R3. EXT.P6: COPY OF THE REPRESENTATION DTD 18.4.2005 SUBMITTED BY THE PETITIONERS BEFORE R3 WITH COPIES TO RESPONDENTS. EXT.P7: COPY OF THE APPELLANT ORDER DATED 12.8.2002 OF THE ADDITIONAL APPELLANT ASSISTANT COMMISSIONER-I COMMERCIAL TAXES, ERNAKULAM. EXT.P8: COPY OF THE ORDER IN T.A.NO.57/2003 DTD 11.4.2005 OF THE KERALA SALES TAX APPELLATE TRIBUNAL, ADDL. BENCH – 1, ERNAKULAM. EXT.P9: COPY OF THE SECTION 7 REVENUE RECOVERY DEMAND NOTICE E2. 120/05-06/ST DTD 18.2.2006 ISSUED TO THE PETITIONERS BY R6. 7th RESPONDENT'S EXHIBITS EXT.R7(a): COPY OF COMMUNICATION DT. 6.4.2006. EXT.R7(b): COPY OF ORDER DT. 31.12.2002. EXT.R7(c): COPY OF ORDER DT. 30.11.2005. TRUE COPY PA TO JUDGE. C.N.RAMACHANDRAN NAIR, J. ------------------------- W.P.(C) No. 7368 of 2006 --------------------------------- Dated, this the 26th day of June, 2008 J U D G M E N T Petitioners' case is that the stock of materials recovered in recovery proceedings should be adjusted towards arrears of tax, for which recovery is initiated. No counter affidavit is filed by the revenue recovery authorities. Since liquor is attached from petitioners' shop, for which petitioners have license to sell the liquor, it was the duty of the Tahsildar to effect sale of the same in accordance with the excise provisions and to remit the sale proceeds in petitioners' account. On the other hand, if liquor could not be sold for whatever reason, the Tahsildar is bound to return the goods to petitioners after arrears of tax are cleared. There is no difficulty for the recovery authorities to return the goods or to get the goods re- purchased by the Beverages Corporation, which is the sole distributor of liquor in the State. In the circumstances, this writ petition is disposed of directing the District Collector, 2nd respondent, to enquire as to what happened pursuant to attachment of liquor from the retail shop and take appropriate action against the subordinate authorities, if the value of the liquor attached is not credited in petitioners' account. This writ petition is disposed of WP(C) No.7368/2006 -2- leaving freedom to respondents to proceed for recovery of the balance amount after giving credit of the value of the goods seized from petitioners' shop. (C.N.RAMACHANDRAN NAIR, JUDGE) jg