2014 (8) TMI 781 - HC - VAT and Sales Tax

Waiver of pre-deposit - Quashing of earlier order passed - Acceptance of bank guarantee instead of personal bond - Held that - Writ Petitions are disposed of, with a direction to the petitioner to execute a personal bond, instead of furnishing bank guarantee, as required by the appellate authority as a condition for grant of stay, in each case. Such a personal bond shall be executed within a period of two weeks from the date of receipt of a copy of this order. On receipt of the personal bond, the appellate authority is directed to dispose of the appeal on merits. On execution of the personal bond, the stay granted by the appellate authority shall continue till the disposal of the appeal - Stay granted.

Summary

Issues:
Petitioner seeks Writ of Certiorarified Mandamus to quash the direction for bank guarantee and request acceptance of personal bond instead.

Analysis:
The petitioner, running a lodging house, filed appeals against assessment orders for multiple years. The second respondent directed payment of 15% tax amount and bank guarantee for the rest by a specified date. Financial difficulties were cited, claiming bank guarantee would severely impact business operations. Reference was made to Section 42(2) of the Tamil Nadu Value Added Tax Act, 2006, empowering the State to recover amounts. The petitioner sought relief through writ petitions.

The petitioner relied on a judgment by a Single Judge and previous court orders directing personal bond over bank guarantee in similar cases. After hearing both sides and examining the records, the court disposed of the writ petitions. The court directed the petitioner to execute a personal bond within two weeks instead of furnishing a bank guarantee as requested by the appellate authority. The appellate authority was instructed to proceed with the appeal on merits upon receipt of the personal bond, with the stay continuing until appeal disposal. No costs were awarded in this judgment.