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2022 (11) TMI 740 - HC - VAT and Sales TaxVehicle Tax - Seeking modification in the condition of deposit of the amount of Rs. 5,00,000/- - What is pleaded in the Civil Application is that the vehicle-car in question is in break-down condition since last more than two years and the condition of deposit of the amount is very harsh - HELD THAT - The court finds substance in the submission of learned advocate for the applicant about the modification of the condition when the car is not usable and expenses of repair is indicated to be very high. The condition requiring the petitioner to deposit Rs. 5,00,000/- deserves to be recalled. The said condition is hereby modified by directing the petitioner to furnish the bond of an amount of Rs. 5,00,000/- before the competent authority - Application allowed.
Issues:
1. Petition to set aside tax demand on a vehicle and release the car. 2. Modification of the condition requiring the petitioner to deposit Rs. 5,00,000. Analysis: 1. The petitioner sought to set aside a tax demand of Rs. 7,40,796 on their car and requested the release of the vehicle, claiming to have already paid Rs. 7,59,277 at the time of registration. The authorities issued a notice demanding an additional amount of Rs. 2,10,388 for Central Service Tax, which the petitioner alleges was never received. Subsequently, the demand escalated to Rs. 7,40,796, leading to the seizure of the car, although it was found parked at the petitioner's residence. The court directed the petitioner to deposit Rs. 5,00,000 before a specified date and ordered the vehicle not to be used until then, maintaining the status quo. 2. In response to the condition of depositing Rs. 5,00,000, the petitioner filed a Civil Application seeking modification, citing that the car had been in a breakdown condition for over two years and estimated repair costs at Rs. 15,00,000. The petitioner argued that the deposit condition was harsh considering the unusable state of the vehicle. Acknowledging the validity of the petitioner's concerns, the court modified the condition, requiring the petitioner to furnish a bond of Rs. 5,00,000 instead of making a cash deposit. The court allowed other directions to remain in effect and instructed the respondents to file a reply before the next hearing date, rescheduled for 17.11.2022.
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