Baiju Ahamed vs. Deputy Tahsildar, Revenue Recovery

WP(C)/22097/2023HC KeralaGSTCNR KLHC01048390202318 December 2023Bench: HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN9 pages
For Petitioner: DILEEP VARGHESE, N.RAYNOLD FERNANDEZ, TESMY VARGHEESEFor Respondent: ADV. VENUGOPAL M.R., DHANYA P.ASHOKAN(K/001671/2000), S. MUHAMMAD ALIKHAN(K/000644/2020), SREEDARSHAN SUDHAKARAN(K/1349/2023), SRI. P.S.APPU, GP
AI SummaryAllowed

Held

The Court held that revenue recovery charges could only be 1% of the total amount paid by the petitioner directly to KFC, along with applicable GST at 18% on that 1%. It quashed Ext.P2 and directed KFC to recalculate the charges and issue a fresh requisition to the Tahsildar.

Facts

The petitioner defaulted on loan liabilities from Kerala Financial Corporation (KFC) and subsequently paid a total of Rs. 3,03,35,200/- in settlement. A dispute arose regarding the calculation of revenue recovery charges, with the petitioner contending only 1% of the settled amount plus 18% GST was due, while authorities demanded a higher sum as per Ext.P2.

Key Issues

The key legal issue was the correct method for calculating revenue recovery charges, specifically whether it should be 1% of the total amount paid directly to the financial corporation by the defaulter, along with applicable GST, or a higher amount as demanded by the revenue authorities.

Sections Cited

None

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN MONDAY, THE 18TH DAY OF DECEMBER 2023 / 27TH AGRAHAYANA, 1945 WP(C) NO. 22097 OF 2023 PETITIONER: BAIJU AHAMED AGED 57 YEARS, S/O BABU K.P, FLAT NO.9 A, TAMARIND NEST, CHEROTY NAGAR, PUTHIYARA, KOZHIKODE DISTRICT, PIN - 673004 BY ADVS. DILEEP VARGHESE N.RAYNOLD FERNANDEZ TESMY VARGHEESE RESPONDENTS: 1 DEPUTY TAHSILDAR, REVENUE RECOVERY KERALA FINANCIAL CORPORATION, KOZHIKODE, PIN - 673001 2 CHIEF MANAGER,KERALA FINANCIAL CORPORATION (KFC) MANUEL SON'S BUILDINGS, G H ROAD, KOZHIKODE, PIN - 673001 BY ADVS. ADV. VENUGOPAL M.R. DHANYA P.ASHOKAN(K/001671/2000) S. MUHAMMAD ALIKHAN(K/000644/2020) SREEDARSHAN SUDHAKARAN(K/1349/2023) SRI. P.S.APPU, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) NO. 22097 OF 2023 2 JUDGMENT

The petitioner availed of certain loan liabilities from the Kerala State Financial Corporation (KFC) and admits that there was some default in repayment of the same. This led to a Revenue Recovery notice being issued to him by the 1st respondent, on the requisition o

The judgment continues below.

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