9911796707
TMI Blog1996 (3) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Act, 1956 from 1975 onwards, has been called upon to pay a sum of Rs. 1,50,000 as security deposit in any nationalised bank in order to prove the genuiness of his business transactions failing which it is threatended that the registration certificate will be cancelled. 2.. Section 21(2-B) and (2-C) reads as follows: "21. (2-B). Where it appears necessary to the authority granting a ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s he has been given an opportunity of being heard. The amount of security which a dealer may be required to furnish under sub-section (1-A) or sub-section (2-B) or the aggregate of the amount of such security and the amount of additional security which he may be required to furnish under sub-section (2-B) by the authority referred to therein, shall not exceed one half of the tax payable. In accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instant case before threatening the cancellation of registration with direction to pay a sum of Rs. 1,50,000 in cash by depositing in a nationalised bank, the Commercial Tax Officer (FAC), Sankarankoil, has not applied his mind to the above provisions of the Here italicised. Act and Rules. He has arbitrarily demanded a huge sum on the ground "to prove the genuineness of your business" which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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