2017 (11) TMI 133 - HC - VAT and Sales Tax

Validity of assessment order - TNVAT Act - requirement of pre-deposit - Held that - As this Court, in a catena of decisions, directed the assessees to execute a personal bond in lieu of furnishing bank guarantee, is of the view that it would be sufficient if the petitioner furnishes bond for the balance 50% of the tax and penalty instead of bank guarantee - petition allowed in part.

Summary

Issues:
Challenge to order of Appellate Deputy Commissioner in a petition for stay.

Analysis:
The petitioner challenged the order passed by the Appellate Deputy Commissioner regarding a petition for stay in relation to an assessment order passed by the Assistant Commissioner under the Tamil Nadu Value Added Tax Act, 2006 for the assessment year 2014-15. The petitioner had filed an appeal before the Appellate Authority and deposited 25% of the disputed tax amount as a pre-deposit for filing the appeal. Along with the appeal, a petition for stay was also filed by the petitioner before the Appellate Authority.

The Appellate Authority, by the impugned order, granted stay for a period of six months or till the disposal of the appeal with conditions. The conditions included directing the petitioner to pay 25% of the disputed tax amount and to furnish security in the form of a bank guarantee for the balance 50% of the tax and penalty. The petitioner sought permission to present a Demand Draft for payment of the 25% disputed tax amount and requested to furnish a bond for the balance amount instead of a bank guarantee, citing previous court decisions.

Considering the previous court decisions directing assessees to execute a personal bond in lieu of furnishing a bank guarantee, the Court modified the condition imposed by the Appellate Authority in the impugned order. The petitioner was allowed to execute a personal bond for the balance tax amount and penalty within two weeks from the date of receipt of the order. Additionally, the petitioner was permitted to present the Demand Draft for the 25% disputed tax amount before the Assessing Officer.

In conclusion, the writ petition was partly allowed, the condition regarding furnishing a bank guarantee was set aside, and the petitioner was directed to execute a personal bond for the balance tax amount and penalty. The petitioner was also permitted to present the Demand Draft for the 25% disputed tax amount. No costs were awarded, and the connected miscellaneous petition was closed.