Madras High CourtWP/15595/2016disposed of

Clean Air Systems v. Appellate Deputy Commissioner

2016-04-26Honourable Mr Justice M.Duraiswamy3 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 26.04.2016

CORAM

THE HONOURABLE Mr. JUSTICE M.DURAISWAMY W.P.No.15595 of 2016 & W.M.P.No.13564 of 2016 Clean Air Systems Rep by its Partner R.Ravi No.4, 1st Floor 100 Feet Road Chennai-600 106 .. Petitioner v.

1 Appellate Deputy Commissioner (CT) Central-Chennai C.T.Building Annexure 3rd Floor, Greams Road Chennai-600 006 2 Assistant Commissioner (CT) Vadapalani Assessment Circle No.1, Greams Road Chennai-600 006 .. Respondents Writ petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus, to call for the impugned proceedings of the 1st respondent passed in S.P.No. 9/16 in APVAT 65/16 dated 24.03.2016 and to quash the same in so far as directing the petitioner to furnish Bank Guarantee for tax and penalty of Rs.10,96,587/- and further direct the 1st respondent to accept personal bond for the sum of Rs.10,96,587/- instead of Bank Guarantee pending disposal of appeal in APVAT 65/16 and issue any other writ or order.

For Petitioner : Mr.R.Kumar For Respondents : Mr.Manoharan Sundaram Addl. Govt. Pleader (Taxes)

ORDER

The petitioner has filed the above writ petition to issue a writ of Certiorarified Mandamus, to call for the records on the file of the first respondent in the impugned proceedings dated 24.03.2016, to quash the same in so far as directing the petitioner to furnish Bank Guarantee for tax and penalty of Rs.10,96,587/- and further direct the first respondent to accept personal bond for the sum of Rs.10,96,587/- instead of Bank Guarantee pending disposal of appeal in APVAT 65/16.

2. The only grievance of the petitioner is that the respondent while granting an order of interim stay, directed the petitioner to pay a sum of Rs.1,96,183/- being 25% of the disputed amount of tax due before the Assessing Authority and with regard to the balance amount of tax and penalty of Rs.10,96,587/-, the petitioner was directed to give Bank Guarantee. The learned counsel appearing for the petitioner submitted that instead of giving Bank Guarantee, the petitioner may be directed to give personal bond for the said sum of Rs.10,96,587/-.

3. Mr.Manoharan Sundaram, learned Additional Government Pleader (Taxes) takes notice for the respondents and submitted that the impugned order may be modified by directing the petitioner to execute personal bond instead of Bank Guarantee.

4. Having regard to the submissions made by the learned counsel on either side, the impugned order passed by the first respondent is modified as follows:- There shall be an order of interim stay till the disposal of the appeal on condition that the petitioner giving personal bond for a sum of Rs.10,96,587/-, within a period of two weeks from the date of receipt of a copy of this order. In other aspects, the orders passed by the first respondent dated 24.03.2016 shall remain unaltered.

With these observations, the writ petition is disposed of. No costs. Consequently, connected miscellaneous petition is closed.

-s/d/- Assistant Registrar True Copy Sub-Assistant Registrar Rj To 1 The Appellate Deputy Commissioner (CT) Central-Chennai C.T.Building Annexure 3rd Floor, Greams Road Chennai-600 006 2 The Assistant Commissioner (CT) Vadapalani Assessment Circle No.1, Greams Road Chennai-600 006 +1 cc to the Government Pleader Taxes High Court Madras sr.26114 +1 cc to M/s.N.Murali Advocate sr.25771 W.P.No.15595 of 2016 & W.M.P.No.13564 of 2016 aa09/05/2016