2022 (9) TMI 1261 - HC - GST

Validity of condition imposed by the second respondent in regard to the furnishing of bank guarantee for the balance of the disputed tax and penalty - HELD THAT - Taking into account the position that the petitioner has remitted 50% of the disputed tax, the petitioner is permitted to furnish a personal bond in respect of the balance of tax and penalty, to the tune of Rs.8,89,275/- Rs.11,30,122/- respectively within a period of four (4) weeks from today. Subject to the furnishing of personal bond by the petitioner, there shall be an order of stay of balance of the disputed tax and penalty till the disposal of the appeals by the first appellate authority. It is made clear that impugned orders dated 25.08.2022 stands modified. The Writ Petitions are disposed off.

Summary

Issues:
1. Prayer for issuance of writ of Certiorarified Mandamus to quash assessment orders and modify security requirement.
2. Compliance with payment directions and grievance against bank guarantee condition.
3. Request to furnish personal bond instead of bank guarantee.
4. Consideration of similar requests by the Court.
5. Response of the Additional Government Pleader.
6. Permission granted to furnish a personal bond in place of bank guarantee.
7. Stay of balance of disputed tax and penalty pending appeal.
8. Modification of impugned orders and disposal of Writ Petitions.

Analysis:
1. The writ petitions sought a writ of Certiorarified Mandamus to challenge assessment orders for the years 2003-2004 and 2004-2005 and to modify the security requirement from bank guarantee to a personal bond.
2. The petitioner had complied with the payment directions but contested the imposition of a bank guarantee for the remaining disputed tax and penalty amounts.
3. The petitioner requested to furnish a personal bond instead of a bank guarantee, citing a similar directive by the first appellate authority in another case.
4. The Court acknowledged similar requests favorably in the past, indicating a precedent for modifying security requirements.
5. The Additional Government Pleader did not oppose the petitioner's request to furnish a personal bond in place of a bank guarantee.
6. Consequently, the Court granted permission for the petitioner to provide a personal bond for the balance of tax and penalty amounts within four weeks.
7. A stay was ordered on the balance of disputed tax and penalty pending appeal, subject to the petitioner furnishing the personal bond.
8. The Court modified the impugned orders to allow for the personal bond and disposed of the Writ Petitions without costs, closing the connected Miscellaneous Petitions.