TaxTMI 
TaxTMI 
TaxTMI 
2012 (5) TMI 877
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....petition and held that the demand notice dated 10.9.1999 is contrary to Section 11(2) of the Indian Post Office Act, 1898 (hereinafter referred to as "the Act") and remitted the matter with a direction to the Postal Authority to consider the representation of the Company after giving it a hearing and with a further direction that, till the matter is decided, the entire deposit of Rs. 50 lacs as was made by the Company in terms of the interim direction be kept with the Postal Authority. In case, it was decided that the amount was not payable by the Company, the Postal Authority would refund the same, but in the event it is found that the amount was due and payable by the Company, the Postal Authority shall adjust the same against the dues. 3. Against the said order, an appeal was preferred by the Company as the learned Single Judge allowed the Postal Authority to retain the amount of Rs. 50 lakhs deposited by the Company in terms of the interim order while another was preferred by the Postal Authority against the said order of the learned Single Judge since the notice of demand was quashed and the learned Single Judge held that the Postal Authority had no power to demand such amoun....
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....hly consumption bills of the appellant company weighs much less than 50 grams. 6. By letter dated 29.5.1997, the Director of Postal Service informed the Company that as per revised postal tariff w.e.f 1st June, 1997, charges for 'Book', 'Pattern' and 'Sample packets' for first 50 gms. or fraction thereof is Rs. 1/-. For every additional 50 gms. or fraction thereof in excess of 50 gms. is Rs. 2/-. Monthly consumption bill, if it is posted as 'Book', 'Pattern' and 'Sample packets' the revised postal tariff w.e.f. 1st June, 1997, as mentioned above will be applicable. 7. Accordingly, from June 1997 to October 29, 1998, the appellant sent a total of 1,63,60,121 Bills, based on the aforesaid communication dated 29.5.1997, treating the posts as 'book post', affixing Rs. 1/-, per postal articles. The posts were cleared by the postal department without any objection and were also delivered to the respective addressee consumers. 8. All of a sudden on 29.10.1998, the appellant, by another letter was informed that the letter dated 29th May, 1997 was treated as cancelled by the Postal Authority with further intimation that the 'Monthly Consumption Bill' does not come under the category of '....
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....pect of posting of electric bills during the period from June 1997 to 29.10.98 at any Post Office and intimate the particulars of deposit to this office. If the deficient amount of postage of Rs. 1,83,89,410/- is not deposited, the same will be treated as due to the Govt. of India from C.E.S.C. Limited." 12. As the Postal Authority continued to make the demand, the Company preferred the Writ Petition No. 2282 of 1999 mainly on the ground that the demand notice dated 10.9.1999 asking the appellant to deposit Rs. 1,83,89,410/-, is contrary to Section 11(2) of the Indian Postal Act, 1898. The learned Single Judge by order dated 7.11.2000 allowed the writ petition affirming that the demand notice is contrary to Section 11(2) of the Indian Postal Act, 1898. The learned Single Judge found that the pre-requisite of fastening liability on the sender of the post under Section 11 is not permissible. Therefore, the Company cannot be saddled with the responsibility to pay. Furthermore, it was also found that the person issuing the demand notice did not have the authority to issue such a notice. However, the learned Single Judge of the Writ Court did not order the refund of Rs. 50 lacs, whic....
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....hority had not produced the so called notification dated 27.8.1997. Therefore, the appellant was seriously prejudiced by non-production of that document. 16. It was further contended that the postal charges for despatch of the electricity bill is recovered by the sender along with the electricity tariff, which could only be done while preparing the bill. Since the Company had no means of recovering any amount and subsequently it cannot pass-on this liability on the addressees, the claim of the postal authority was denied. It was also contended that there is no provision whatsoever for levying arrears on postal charges and without complying with the terms and mandate of Section 12 of the Act, the Vigilance Officer issued a demand notice for Rs. 1,83,89,410/- with a threat that unless the aforesaid amount is deposited within 30 days, a direction would be given that all postal services conveying articles, except the government services despatched by the Company, be withheld. Therefore, the demand was ex-facie illegal. 17. The learned counsel appearing on behalf of the Postal Authority contended that the postal tariff was revised with effect from 1.6.1997 and again from 1st August 19....
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.... arising for consideration is whether the respondents have the authority and power under the Indian Post Office Act, 1898 or the Post Office Guide or any other Rule/guidelines to demand the alleged deficit amount of postage from the "sender" of the postal articles, after receiving the same from the "sender" without any objection to the deficit amount and after delivering the postage articles to the addressee without claiming any deficit amount from the "addressee". 24. Clause 11(10) (xv) of the Post Office Guide, relates to recovery of an amount in the event of a breach of the conditions of the license and reads as under:- "11. Franking Machine.- A postal franking machine is a stamping machine intended to stamp impressions of dies of approved design on private and official postal articles in payment of postage and postal fees. A commission of 1- 1/2 per cent is permitted on the value of franks used. 2. x x x x x x x x x x x x x x x x x x (10) The licence is granted to the following conditions. (xv) In the event of a breach of any condition of the licence, the licence will be forthwith cancelled by the head of the Postal Circle who will not be responsible for any loss whi....
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....turned as aforesaid, or if the addressee is dead or cannot be found, then the sender shall be bound to pay the postage or sum due thereon under this Act." 29. Section 12 of the said Act, 1898 empowers the Postal Authority to recover the postage and other sums due, in respect of postal articles which reads as under:- "12. Recovery of postage and other sums due in respect of postal articles. If any person refuses to pay any postage or other sum due from him under this Act in respect of any postal article, the sum so due may, on application made by an officer of the Post Officer authorised in this behalf by the written order of the Post Master General, be recovered for the use of the Post Office from the person so refusing, as if it were a fine imposed under this Act, by any Magistrate having jurisdiction where that person may for the time being be resident, and the Post Master General may further direct that any other postal article, not being on (Government) Service, addressed to that person shall be withheld from him until the sum so due is paid or recovered as aforesaid." 30. Thus from Section 11 it is clear that the 'addressee' will be liable to pay the deficit postal charges....
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....nt and quoted hereunder: "DEPARTMENT OF POST, INDIA OFFICE OF THE CHIEF POST MASTER GENERAL, W.B. CIRCLE, YOGAYOG BHAWAN, CALCUTTA - 700 012 From O/O the Chief P.M.G. To The Deputy Manager West Bengal Circle (Commercial) Yogayog Bhawan Victoria House Calcutta 700 012 Chowrighee Square Calcutta 700 001 No. Tech/Z27/9/90 Dated at Calcutta 700012 the 29.10.1998 Subject Sir, I am directed to inform you that this office earlier letter of even no. dtd. 29.5.97 is hereby treated as cancelled. Monthly consumption bill is not under the category of Book Post/Book Packets as per this office rule. This type of bill can be posted affixing the postage stamp as applicable on the letter mail with immediate effect. Yours faithfully Sd/ (S.C. Sahu) A.D.P.S. (Technical) For Chief Postmaster General, Cal12 " 33. Thus it is apparent that due to a wrong intimation given by the Postal Authority, the Company affixed the postal stamp of Rs. 1/ per bill, treating it as 'book post' and the staff of the Postal Department without any objection cleared and delivered to the respective addressees. 34. Clause 30(iv) of Post Office Guide reminds the office of the Postal Authority....