Excise Commissioner & Ors vs Ajith Kumar & Anr

On the premise that the said amount should be adjusted from the total liability of the first respondent, a dispute arose between the parties herein as no credit was given in respect of the said amount of Rs.31,49,288/-. A writ petition was filed by the first respondent which was allowed by a judgment and order dated 11.8.2000 whereby and whereunder it was directed that the amount collected would be adjusted towards liability due from the appellant. The question, however, which arose for consideration was as to whether till the entire amount was adjusted, the first respondent was liable to pay any interest thereupon or not.

4. First respondent sought the benefit of the said Government Order which was denied to him on the premise that he had not complied with the conditions precedent therefor.

5. By reason of an order dated 14.12.2001, the representation of the respondents was rejected by the Excise Commissioner. They were directed to deposit an amount of Rs.83,26,344/- with future interest at the rate of 18% per annum on sum of Rs.41,16,841/- w.e.f. 8.12.2001. A Revenue Recovery Notice was issued for recovery of the said sum from the respondents on or about 4.4.2002.

Aggrieved by and dissatisfied therewith, the respondents filed a writ petition before the High Court on 23.4.2002 questioning the validity of the said notice dated 4.4.2002.

7. An intra court appeal preferred thereagainst by the appellant herein, marked as Writ Appeal No.153 of 2006, has been dismissed by a Division Bench of the said High Court stating that no ground was made out for interference with the directions issued by the learned Single Judge.

(v) The Commissioner will give a statement as above within two weeks from the date of production of a copy of this judgment for petitioners to make payments and settle liability."

Excise Commissioner shall contact the revenue recovery authority concerned in whose cases the amount has been recommended for realization under the revenue recovery act and shall calculate the quantum of the rentals, taxes, duties and other amounts and interest payable under Rule as on the date of the application and the amount of interest payable after allowing the reduction of interest under this provision. After getting the amount thus calculated being remitted into the treasury the Asst. Excise Commissioner shall withdraw the revenue recovery requisition from the revenue authority. Asst. Excuse Commissioners are authorized to get the money remitted in the treasure in this behalf. In those cases in which revenue recovery proceedings have not been initiated by the Asst. Excise Commissioner concerned, on receipt of application from the defaulters, the Asst. Commissioner shall quantify the amount as said above and to get it remitted."

15. If the benefit of the said notification could not be availed of by the respondents because of the pendency of the writ petition, in our opinion, the High Court cannot be said to have committed any jurisdictional error in passing the impugned judgment.

19. For the reasons aforementioned, there is no merit in the appeal. The appeal is dismissed with costs quantified at Rs.10,000/- (Rupees ten thousand only).