P.N.SASI Vs. DEPUTY EXCISE COMMISS IONER

JUDGEMENT

(1.) By this writ petition, petitioners who were licensees of group of toddy shops of Vaikom Range are praying for directing the 1st respondent-Deputy Excise Commissioner to transfer their amounts lying with the 1st respondent in the Treasury Savings Account (TSA) with interest to the 2nd respondent-Kerala Toddy Workers Welfare Fund Board with a direction that the said amount be adjusted towards the amount due to the said Board.

(2.) It is the case of petitioners that they were licensees of toddy shops of Vaikom Range till the year 2017-2018. Thereafter they are not running those toddy shops. By virtue of Section 2(c) of the Kerala Toddy Workers' Welfare Fund Act , 1969, they become "employer" and as such they were jointly and severally liable to remit contribution of workers by deducing the same from wages for being remitted to the Kerala Toddy Workers Welfare Fund Board. It is stated that a sum of about Rs.25 lakhs is due and payable towards arrears of workers' welfare fund contribution by petitioners and at the instance of the 2nd respondent, proceedings have been initiated for recovering the same. Petitioners submitted that they had addressed a letter, Ext.P1, to the 1 st respondent-Deputy Commissioner of Excise requesting that the amount deposited by them and kept in the Treasury Savings Account with the Excise Department be transferred for clearing dues of welfare fund contribution payable under the Kerala Toddy Workers Welfare Fund Act, 1969. However, no action was taken on representation of petitioners and therefore, petitioners are praying for a direction to the 1st respondent to transfer the amount of petitioners kept in the Treasury Savings Account to the 2nd respondent-Board for clearing the dues payable by petitioners.

(3.) This writ petition is opposed by 1 st respondent-Deputy Commissioner of Excise by filing counter affidavit. According to the Excise Department, the Circle Inspector of Excise, Vaikom had directed petitioners to produce certificate to the satisfaction of the Deputy Commissioner of Excise that wages and other benefits to workers have been paid in full. However, there was no response from petitioners and the Circle Inspector of Excise reported that a sum of more than Rs.22 lakhs is due from petitioners in respect of Toddy Workers Welfare Fund as on 31.12.2018 and accordingly, revenue recovery proceedings are initiated against petitioners under the provisions of Section 9 of the Kerala Toddy Workers' Welfare Fund Act , 1969. It is further averred by the 1 st respondent that the amount deposited in the Treasury Savings Account cannot be released to petitioners until and unless wages and other benefits to the workers have been paid in full. By placing reliance on Rule 5 of the Kerala Abkari Shops Disposal Rules, 2012, the 1 st respondent contended that the amount lying in Treasury Savings Account shall not be released to the grantees until the grantees prove to the satisfaction of the Deputy Commissioner of Excise that wages and other benefits to the workers have been paid in full. In other words, according to the Deputy Commissioner of Excise, a clear recommendation from the Circle Inspector of Excise that there are no outstanding dues, is necessary for processing the application at Ext.P1 submitted by petitioners for transferring the amount lying in the Treasury Savings Account to the Toddy Workers Welfare Fund.