This writ petition challenged an excessive demand notice for penal interest on building tax and library cess. The Court held that only 1% per month is permissible under Section 209E and quashed the excess amount.
The writ petition was allowed; the Ex.P5 demand notice to the extent it demanded penal interest of Rs.42,865/- was quashed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE SMT. JUSTICE P.V.ASHA
FRIDAY, THE 27TH DAY OF MAY 2016/6TH JYAISHTA, 1938
WP(C).No. 10564 of 2011 (U)
PETITIONER(S):
SREENIVASAN, S/O.SUBRAMANIAN MOOTHATH, YESODHA NIVAS, KONGAD, PALAKKAD DISTRICT, PIN-678 631.
BY ADV. SRI.B.PRAMOD
RESPONDENT(S):
1. KONGAD GRAMA PANCHAYAT, KONGAD, PALAKKAD DISTRICT, REP.BY ITS SECRETARY-678631.
2. THE SECRETARY, KONGAD GRAMA PANCHAYATH,
BY ADVS. SRI.A.V.RAVI
SRI.M.SUGADHA KUMAR
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 27-05-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
PJ
WP(C).No. 10564 of 2011 (U)
APPENDIX
PETITIONER(S)' EXHIBITS
RESPONDENT(S)' EXHIBITS
NIL.
/ TRUE COPY /
P.S. TO JUDGE
PJ
P.V.ASHA, J.
W.P(C) No.10564 of 2011-U
Dated this the 27th day of May, 2016
JUDGMENT
The petitioner's grievance in this Writ Petition is that penal interest is demanded at a higher rate as per Ext.P5 demand notice along with the demand for building tax and library cess. By Ext.P5 demand notice a sum of Rs.61,236/- was demanded towards building tax and library cess for the period from 200506 to 2010-2011 by the respondent Grama Panchayat for the Yesodha Kalyana Mandapam in the ownership of the petitioner.
2
W.P(C) No.10564 of 2011-U
“209E. Recovery of tax payable:- Notwithstanding anything contained in this Act, any amount payable under the provisions of this Act, rules or bye-laws, is not paid on the due date, shall be recovered together with penal interest at the rate of one percent per month from the due date:
Provided that no penalty shall be recovered on any amount that has become payable or payable in a half year, if it is paid in the same half year.”
Thus it can be seen that the rate of penal interest provided under the provisions is one percent per month from the due date. According to the petitioner, this will come only to a sum of Rs.7,500/-. Anyway, I am not going into the correctness of the calculation by the petitioner, as it is for the Panchayat to see that the tax is reckoned in accordance with the provisions contained in the Act and Rules. Therefore, the demand made in Ext.P5 notice with respect to penal interest will be modified after recalculation in accordance with Section 209E of the Kerala Panchayat Raj Act, 1994, ie. @ 1% per month from the due date. No other provision enabling the Panchayat to realise penal interest is brought to my notice.
In these circumstances Ext.P5 to the extent it demands penal interest of Rs.42,865/- is quashed. There shall be a
3
W.P(C) No.10564 of 2011-U
direction to re-fix the penal interest due from the petitioner in accordance with Section 209E of the Kerala Panchayat Raj Act,
1994 in case the same is to be realised from the petitioner.
The Writ Petition is disposed of accordingly.
Sd/- (P.V.ASHA, JUDGE)
rtr/
1 issue framed by the court
Whether the demand notice for penal interest exceeding the statutory rate of 1% per month under Section 209E is maintainable.
1 provisions across 1 enactments
SREENIVASAN
KONGAD GRAMA PANCHAYAT
THE SECRETARY, KONGAD GRAMA PANCHAYATH
P.V.ASHA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
