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TMI Blog2021 (4) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... a direction is sought for to raise the encumbrance created by way of Intimation in Nk.3205/98/A3, dated 12.12.2007. 2. The petitioner states that her husband Mr.V.Kadhirvel filed an application for registration on 27.08.1992 under Section 21 of the Act, as a Proprietor concern for carrying on the business of buying and selling cotton waste in the name of Sri Angalamman Traders. 3. As per Section 21(1-A) of the TNGST Act, 1959, the respondent directed to furnish security, which shall not exceed one and half of the tax payable on the estimated taxable turnover disclosed in the application for registration, which is only Rs. 2,500/-. Accordingly, the petitioner executed a security bond on 02.09.1992 in Form XIX B, by furnishing her properti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel appearing on behalf of the petitioner, solicited the attention of this Court with reference to Section 24(2) of the TNGST Act and by relying on the said provision, the learned counsel submits that it is to be read along with Rule 24(15-A) of the Tamil Nadu General Sales Tax Rules, the registration of mortgage property, which is given by way of security as mandatory. 8. In the present case on hand, admittedly, there was no mortgage of property registered and therefore, the actions initiated against the entire property belongs to the petitioner is void ab initio. 9. Learned counsel appearing on behalf of the respondent disputed the contentions by stating that, while registering the business by Mr.V.Kadhirvel, the petitioner executed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is apart, the respondent-Department has no direct right to deal with the property, which is given by way of security and admittedly, the petitioner is the owner of the immovable property mentioned in the security bond and she has got an absolute right. Only in the eventuality of nonpayment by the Proprietor of the business, then alone the respondent- Department gets the right to invoke the provisions and initiate action to recover from the person, who has given security and against the immovable property. Thus, there is no direct right vest on the respondent-Department to initiate action against the property given by way of security bond. Under those circumstances, the registration is not required and therefore, the very contention raised b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Proprietor, who registered the business under the provisions of the TNGST Act. But the security bond was not executed in her capacity as wife of the Proprietor and she executed the same in her capacity as an 'individual person' and she has given an undertaking that in the event of non-payment of statutory dues, the immovable property given by way of security can be attached. 18. This being the very spirit of the security bond, now the petitioner cannot turn around and say that her liability is limited and this even incidental also, the wife being Class I legal heir successor, she is entitled both right to acquire the property and liable to clear the dues under the Law. However, the said ground is unnecessary with reference t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional security would not arise at all. 21. In view of the fact that statutory dues are recoverable and no one should be allowed to escape from the payment of statutory dues, this Court is of an opinion that the provisions are to be interpreted pragmatically and constructively, so as to ensure that the purpose and object of the Statute are meted out and the public interest is protected. Thus certain Rules or guidelines formulated for the purpose of implementing the provisions of the Act and time limits or certain procedures, guidelines contemplated are to be construed as directory and cannot be held as mandatory. 22. Certain guidelines, procedures and rules are made for the convenience of the authorities to maintain consistency in impleme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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