Collection charges may be recoverable under the Kerala Revenue Recovery Act for tax dues, even if the collection was through statutory compensation adjustments.

JUDGMENT :

Ziyad Rahman A.A., J.

The petitioner is the Director of a private limited company by the name M/s.Raj Residency. This writ petition is filed by him, being aggrieved by the demand of collection charges under Kerala Revenue Recovery Act, in respect of the recovery affected from the amount received by the petitioner as compensation for acquiring the immovable property of the petitioner under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Such recovery was affected for realizing the arrears of tax payable by the Company named above.

2. The facts that led to the filing of this writ petition are as follows:

The petitioner was awarded with a land acquisition compensation to the tune of Rs.87,83,471/- as per Ext.P1 award dated 17.03.2022. However, the said amount was withheld by the Revenue authorities, on the ground that, there were certain arrears of sales tax, recoverable from the Company in which the petitioner was the Director. The action of withholding the compensation was challenged by the petitioner before this Court, by filing W.P.(C).No.24177 of 2022 and the said writ petition was ultimately disposed of as per Ext.P2. In Ext.P2 judgment, this Court directed the Revenue authorities to release the amount payable to the petitioner as per the award, after withholding a sum of Rs.50,00,000/-. It was further directed that the 1^st respondent therein, i.e.,the Land Acquisition Officer, shall remit Rs.50,00,000/- to be adjusted against the tax liability of the petitioner, to the designated account of the Commercial Taxes Department, which was to be intimated by the Deputy Commissioner, Tax Payer Services Division, Goods and Services Tax Department, Kollam. The said direction was issued without prejudice to the right of the Company to invoke the statutory remedies against the demands in accordance with law.

3. Accordingly, the said amounts were released after withholding Rs.50,00,000/-. Subsequently, the Company settled the remaining tax arrears, by availing the Amnesty Scheme and the amount so paid as per the settlement was Rs.1,19,906/-. Thus, the entire tax liability of the assessee company, in which the petitioner was the Director, was settled, by way of adjustment of land acquisition compensation and also by direct payment to the Tax Department. In the writ petition, the petitioner had furnished the details of the payments effected, in a tabular form, which are as follows:

4. Subsequently, Ext.P7 notice was issued by the Deputy Commissioner (Arrear Recovery), the 1^st respondent herein, requiring the petitioner to pay the collection charges for the amount recovered from the petitioner, as contemplated under the provisions of the Kerala Revenue Recovery Act, 1968 and the Kerala Revenue Recovery Rules, 1968. This demand is under challenge in this writ petition and the reliefs sought by the petitioner are as follows:

“i) To issue a writ in the nature of certiorari or any other appropriate writ or order quashing Ext. P7 letter issued by the 2^nd respondent to the 1st respondent.

ii) To declare that collection charges under the Kerala Revenue Recovery Act, 1968 and Rules made thereunder can not be demanded when payment is effected as adjustment from Land acquisition compensation, as per the directions of the court;

iii) To declare that collection charges under the Kerala Revenue Recovery Act, 1968 and Rules made thereunder can not be demanded when the amount is paid directly to the department concerned (requisition authority) as part of OTS/ Amnesty Scheme;

iv) to direct the 4th and 5th respondent to accept the land tax of the prop