BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 20/10/2008 CORAM THE HONOURABLE MR.JUSTICE G.RAJASURIA WP(MD).No.9121 of 2008 and WP(MD).No.9122 of 2008 M/s.Sri Mahalakshmi Agencies, rep.by its Partner V.A.Ganesan ... Petitioner in both W.Ps. Vs. 1.The Secretary, Sales Tax Appellate Tribunal, (Addl.Bench), Madurai. 2.The Appellate Assistant Commissioner, (Commercial Taxes) Madurai (south). 3.The Commercial Tax Officer-I(FAC), Theni. ... Respondents in
both W.Ps.
Prayer
Writ Petitions filed under Article 226 of the Constitution of
India praying to issue a writ of Certiorarified Mandamus calling for the records
in MTP.Nos.29 & 30/08 in MTA.Nos.20 & 21/08 dated 30.07.2008 on the file of the
1st respondent and quash the same as illegal and direct the 3rd respondent to
accept the personal bond to be executed by the petitioner in lieu of security.
!For Petitioner …Mr.S.Karunakar
^For Respondents …Mr.V.Rajasekaran, Spl.G.P.
:COMMON ORDER
Heard Mr.S.Karunakar, learned counsel appearing for the petitioner
and Mr.V.Rajasekaran, learned Special Government Pleader, who took notice on
behalf of the respondents.
2. Succinctly and precisely the case of the petitioner is that
against the order of assessment relating to the assessment year 2001-2002 and
2002-2003 respectively, the petitioner filed two appeals before the second
respondent in A.P.Nos.140 and 142/2006 dated 04.12.2007; the first respondent,
by the conditional order dated 30.07.2008, directed the petitioner to furnish
Bank guarantee or sufficient security to the satisfaction of the Assessing
Officer concerned for 50% of the penalty amount of Rs.41,906 and Rs.5,42,307/-
respectively on or before 10.09.2008 and the remaining amount of penalty is
stayed till the disposal of the appeal. Being aggrieved by regarding the
direction for furnishing of security, the writ has been filed. In the
affidavit, it is found stated by the petitioner that he does not own any
immovable property free from encumbrances and has no liquid resource to take a
bank guarantee nor pay the balance of arrears. Hence, the prayer to quash the
impugned order.
3. In several similar matters, this Court modified the conditions.
Considering the facts and circumstances of this case and the submissions made on
either side and keeping in view the fact that there is automatic charge is
available under Section 24(2) of the Tamil Nadu General Sales Tax Act, on the
properties of the defaulting assessee, the condition imposed by the first
respondent is modified as follows:
“Instead of furnishing security bond, the petitioner is directed to
execute a personal bond for the penalty amount within a period of two weeks from
today failing which, this order shall stand vacated.”
4. With the above directions, these writ petitions are disposed of. No
costs.
arul
To
1.The Secretary,
Sales Tax Appellate Tribunal,
(Addl.Bench), Madurai.
2.The Appellate Assistant Commissioner,
(Commercial Taxes)
Madurai (south).
3.The Commercial Tax Officer-I(FAC),
Theni.