The seats are definitely sold at current reservation counters. And its logical too, why would IR let the seats go empty in case somebody wants to pay for it?
The issue is that there are two different opinions regarding the fare charged, some sources suggest that its Tatkal + catering while others seem to suggest that its the last dynamic fare reserved on the same TDRC (Train, Date, Route, Class). .
What is the reality among these two is something even I would like to know. If its Tatkal + Catering then a...
more... lot of people should take advantage of the same but somebody needs to try it at the current counter and report it here.