Recovery of foreign trade penalty as arrears of land revenue upheld through state revenue machinery on requisition.

Penalty imposed under the Foreign Trade (Development and Regulation) Act, 1992 was expressly recoverable as arrears of land revenue under section 11(4). Section 5 of the Revenue Recovery Act, 1890 enabled the Collector, on requisition by the concerned public officer, to recover the amount as if it were arrears of land revenue in his own district. The legal fiction was held to activate the State recovery machinery for effective enforcement, and no separate certificate was required on the facts stated. The recovery notice was therefore treated as valid.

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Issues: Whether the penalty imposed under the Foreign Trade (Development and Regulation) Act, 1992 could be recovered through the machinery of the Andhra Pradesh Revenue Recovery Act, 1864 on a requisition made under the Revenue Recovery Act, 1890.

Analysis: The penalty was expressly made recoverable as arrears of land revenue under section 11(4) of the Foreign Trade (Development and Regulation) Act, 1992. Section 5 of the Revenue Recovery Act, 1890 authorises the Collector, on request of the concerned public officer, to proceed to recover the amount as if it were arrears of land revenue accrued in his own district. The Court held that this legal fiction brings into operation the State recovery machinery for effective recovery, and that the Collector was competent to act on the requisition received without any separate certificate being required in the circumstances of the case.

Conclusion: The impugned recovery notice was valid and the challenge failed.

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