The petitioner, a Bar Hotel, registered under the Kerala Value Added Tax Act, 2003 (for brevity "the Act"), is aggrieved by Exhibits P1 and P2 notices, to the extent it demands collection charges.
2. The brief facts, necessary for the adjudication of the above writ petition, are that the petitioner/assessee was assessed to tax under the Act for the years 2005-06 and 2007-08. Amounts were payable by the assessee under the assessment orders; which were defaulted, upon which revenue recovery proceedings were initiated. The petitioner approached this Court and obtained an order granting instalments for satisfaction of the entire dues. Admittedly the petitioner had paid the entire dues as per the interim order granted. Subsequently Exhibits P1 and P2 were issued for the respective years, demanding interest as also collection charges for the amounts already paid.
WP(C).No.29979 of 2010-V - 2 -
3. The petitioner does not dispute the interest element and paid the same, as demanded. With respect to the collection charges, the petitioner relies on the decision of this Court reported in Vijayan N.P. v. Tahsildar (Revenue Recovery ) Thalassery & Others [2012 (4) KHC 151]. A Division Bench, in the said case, was concerned with the recovery of motor vehicles tax and held that the collection charges should be limited to the amount recovered by sale of the vehicle and no collection charges should be demanded from the defaulter for the voluntary payment made based on interim orders issued by this Court.
In the light of the binding dictum, laid down by this Court, in Vijayan N.P. (supra), this writ petition is allowed. Exhibits P1 and P2 to the extent it demands collection charges from the petitioner, is set aside. Parties are left to suffer their respective costs.
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Sd/- K.Vinod Chandran Judge.
( true copy )