- (1.) Leave granted.
(2.) The Government of Kerala in exercise of the powers conferred under Sections 18A and 29 of the Abkari Act 1 of 1077 amended the Kerala Abkari Shops (Disposal in auction) Rules, 1974 and issued notification G.O. (M.S.) No.31/74/TD dated 28th February 1974, published vide the Gazette Notification No.G.O.(P)No.88/2000/TD dated 2nd June, 2000, incorporating Rule 6 after sub-rule (5) of the following sub rule, which reads as follows: "25A. Reduction of interest in certain cases i) Notwithstanding anything contained in this rule or any other rules made under the Abkari Act 1 of 1077 or in any judgment, decree or order of any court, the person who are in arrears to pay rentals, taxes, duties or other amounts under this rule as on 31st Day of March 1997 shall be entitled to a reduction of Seventy five per cent of the amount of interest accrued on such rentals, taxes, duties or other amounts as the case may be, Provided that the entire arrears of rentals, taxes, duties or other amounts with the reduced interest shall be paid on or before the 31st day of August, 2000; Provided further that the maximum interest payable after allowing the reduction mentioned above shall be limited to one hundred per cent of the principal amount of rentals, taxes, duties or other amounts outstanding as arrears."
(3.) Claiming the benefit of the above-mentioned provision, the appellants approached the learned Single Judge of the High Court of Kerala. It was pointed out that though the above-mentioned notification was published in the Gazette on 3.6.2000, the effect of Section 25A would be from 31.7.1997. It was also submitted before the learned Single Judge that the appellants, even though remitted the entire amount on 4.4.1998 i.e. after the cutoff date mentioned in Section 25A, the state of affairs prevalent as on 31.3.1997 would govern the rights of parties for refund of the amounts. Consequently, it was contended that the appellants are entitled to get refund of the amount. The learned Single Judge allowed the writ petition and passed the following order: "By Ext. P8, the Kerala Abkari Shops (Disposal in Auction) Rules, 1974 were amended inserting section 25A whereby those persons who had arrears to pay rentals, taxes, duties or other amounts under those rules as on 31.3.1997 were entitled to a reduction of 75% of the amount of interest accrued on such rentals, taxes, duties or other amounts as the case may be. Though Ext. P8 is issued only on 2.6.2000 and published in the gazette on 3.6.2000, the effect of section 25A is on the basis of the state of affairs as on 31.3.1997. Admittedly, the petitioner made the remittance only on 4.4.1998, that is, after the cutoff date in terms of section 25A. He is, therefore, entitled to the benefit of section 25A in relation to the arrear that was outstanding as on 31.3.1997. It is so declared. The impugned orders shall stand modified accordingly and the Excise Commissioner is directed to have the outstanding worked out on the basis of the declaration contained in this judgment and have a demand issued to the petitioner for any outstanding balance, within an outer limit of three months from the date of receipt of a copy of this judgment.";