Revenue recovery certificate issued by Collector held valid

Revenue recovery certificate issued by Collector held valid In exercise of the jurisdiction conferred under RRA Coimbatore Collector authorised his Trichur counterpart to recover excise arrears from a person. While holding as valid a revenue recovery certificate issued by the Coimbatore Collector, authorising his Trichur counterpart to recover excise arrears from a person, the Madras High Court has said that the Central Revenue Recovery Act (RRA) confirms the authority of a Collector to recover revenue arrears based on the certificate issued by a Collector of another State. Allowing a writ appeal by the Prohibition and Excise Department, Chennai, the District Collector, and the Excise Officer, Coimbatore, challenging an order of a single judge, a Division Bench, comprising Justices Prabha Sridevan and K.K.Sasidharan, in its judgment said that the revenue recovery certificate was issued by the Coimbatore Collector in exercise of the jurisdiction conferred under the RRA. A district as found in the law had to be construed as a district anywhere in the country. P.V.Suresh was the licensee to run an arrack shop at Vettaikaranpudur and two toddy shops at Kinathukadavu and Sivakkalampalayam in Pollachi taluk for excise year 1981-82. He submitted that due to the influence of some political leaders, the functioning of toddy shops was stopped by authorities and re-auction conducted. As the authorities did not supply the required quantity of arrack, he was forced to discontinue business. Subsequently, he received a notice from the Tahsildar, Trichur, asking him to pay Rs.2.12 lakh stated to be the excise arrears for 1981-82. He challenged this before the Kerala High Court, which disposed of the petition by granting liberty to file proceedings before the proper forum. Accordingly, he filed a writ petition before the Madras High Court in 1997 seeking to quash the recovery notice dated December 1990 of the Village Officer, Trichur, and a consequential direction to the licensing authority to refund Rs.1.14 lakh deposited by him. The official authorities said that due to the default by the licensee, the government had to conduct re-auction and only lesser amount was received in it, which prompted them to assess the notional loss. The loss was liable to be recovered from Mr.Suresh under the RRA. As he was residing at Trichur and had property within the jurisdiction of the Trichur Collector, revenue recovery proceedings were initiated and made over to the Trichur Collector for realisation of the amount. The single judge said that the notice was bereft of details. He quashed the recovery proceedings and directed the authorities to refund Rs.15,000 paid by the ex-licensee as per the court’s interim direction. Aggrieved, the Tamil Nadu Government preferred the present appeal. The Bench said once an auction was concluded in favour of a licensee, he was bound to adhere to the contract’s terms and conditions. There was no question of a licensee who had defaulted challenging re-auction or assessment of notional loss on the ground of lack of fairness or violation of principles of natural justice. The licensee could challenge the proceedings fixing liability or quantum on valid grounds. Unless the order fixing liability was challenged, such orders would be binding on the licensee. If the State decided to execute the order by resorting to RRA, it would not be possible for the licensee to challenge the recovery order, there being no challenge to the order fixing liability.

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