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Judgment
Honourable Mr. Justice R. Sudhakar
This Writ Petition is filed praying to issue a Writ of Certiorarified Mandamus, to call for the records of the first respondent in S.P. No. 104/2012 in A.P. No. 71/2012 and quash the impugned order dated 8.10.2012 and further direct the first respondent to grant an absolute stay of collection of the balance of disputed tax and the entire penalty in respect of the assessment year TIN 2010-11 without imposing any further condition of furnishing of security in the form of immovable property or bank guarantee pending disposal of the appeal on his files. Mr. Aditya Reddy, learned Government Advocate (Tax) takes notice for the respondents. By consent, the writ petition is taken up for final disposal.
The subject matter of the appeal is the demand for tax for Rs. 2,33,375/- and penalty of Rs. 2,89,391/-. The Appellate Authority thought it fit to impose a condition to pay a sum of Rs. 77,800/- amounting to 25% of the disputed tax. Further, for the balance amount of tax and for the entire penalty amounting to Rs. 4,44,967/-, petitioner was directed to furnish valid security in the form of Bank Guarantee obtained from any of the National Banks. After payment of Rs. 77,800/- being 25% of the disputed tax amount, petitioner is before this Court seeking modification of the order insofar as imposing the condition to submit bank guarantee stating that the condition is onerous and is causing serious prejudice to the petitioner company.
Petitioner relies upon the earlier decision of this court in W.P. (MD) No. 10567 of 2006 dated 27.11.2006 (M/s. Raja Ceramics, represented by its Partner M.A. Nazimal Gani, 720, East Veli Street, Madurai vs. The Appellate Assistant Commissioner (CT) Madurai (South) to plead for modification in terms of the said order. Para 4 of the order reads as follows:-
In a number of similar matters, this Court modified the conditions. Considering the facts and circumstance of the case, the submissions made on either side and keeping in view the fact that an automatic charge is created u/s 24(2) of the Tamil Nadu General Sales Tax Act on the properties of the defaulting assessee, the following order is passed:-
The condition imposed in paragraph 6 of the order of the first respondent to the effect that the petitioner should furnish adequate security on or before 17.11.2006 is modified and the petitioner is directed to execute a personal bond for the balance of tax and penalty amounting to Rs. 1,79,876/- (Rupees One lakh Seventy nine thousand eight hundred and seventy six only) within a period of fifteen days from today, failing which, this order shall stand vacated.
In view of the above decision of this Court, the petitioner is directed to furnish a personal bond for Rs. 4,44,967/- (Rupees Four Lakhs Forty Four Thousand Nine Hundred and Sixty Seven only) within a period of fifteen days from the date of receipt of a copy of this order, failing which the order shall stand automatically vacated. The Writ Petition is ordered as above. No costs. Consequently, connected miscellaneous petition is closed.