Tvl.Kings Bags, v. The Appellate Deputy

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 05.02.2016 CORAM :

THE HONOURABLE MR.JUSTICE B.RAJENDRAN Writ Petition (MD) No.2594 of 2016 Kings Bags, rep by its Proprietor P.Ebinesar Joy, 91-A, Anjalkaran Thope Street, Trichy ... Petitioner Vs.

1.The Appellate Deputy Commissioner (CT), Trichy.

2.The Assistant Commissioner (CT), Srirangam Assessment Circle, Trichy.

... Respondents Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorarified Mandamus calling for the records in S.P.No.296/2015 in VAT AP No.346/2015 dated 04.01.2016 on the file of the 1st respondent and quash the same as illegal and direct the 2nd respondent to accept the personal bond to be executed by the petitioner in lieu of security. For Petitioner : Mr.S.Karunakar For Respondents : Mr.R.Karthikeyan, Additional Government Pleader.

ORDER

This writ petition has been filed challenging the order of the stay granted by the appellate authority on condition to deposit 25% of the disputed tax and to furnish bank guarantee. 2.Mr.R.Karthikeyan, learned Additional Government Pleader takes notice on behalf of the respondents. By consent, the writ petition itself is taken up for final disposal at the admission stage.

3.According to the petitioner, he has paid 25% of the disputed tax originally for preferring an appeal and thereafter, stay application was moved and he was directed to pay 25% and that amount has also been paid. Now, the petitioner is only concern with the onerous condition of directing him to furnish bank guarantee for the remaining amount, as it will amounts to double

taxation.

4.In an unreported judgment of the Division Bench of this Court made in W.A.(MD)No.194 of 2005, dated 13.07.2006, this Court has stated as follows:- "2.When the appellant preferred a statutory appeal before the first respondent, as a condition precedent for filing an appeal, the appellant deposited 25% of the tax assessed. It is stated that as per the interim orders of the first respondent, the appellant has also paid another 20% of the assessed tax which is under challenge before the first respondent.

3.In such circumstances, we feel that the interim order of stay granted by the first respondent can be directed to be continued subject to the appellant furnishing a personal bond for the remaining tax amount as well as penalty.

4.Subject to such modification, the writ appeal stands disposed of. The order of the learned single judge is also modified to the above extent. Such personal bond shall be furnished by the appellant within a period of four weeks from the date of receipt of a copy of this order. No costs. Consequently, connected Miscellaneous Petition is closed."

5.In view of the above, the order of the appellate authority is confirmed insofar as payment of 25% of disputed tax is concerned and insofar as payment of bank guarantee is concerned, it is modified to one of furnishing a personal bond for the remaining amount as well as penalty. Such personal bond, shall be furnished, within a period of four weeks from the date of receipt of a copy of this order. It is made clear that the appellate authority shall dispose of the appeal itself, as expeditiously as possible.

6.With the above modification, the writ petition is disposed of. No costs.

Sd/- Assistant Registrar /True Copy/ Sub Assistant Registrar

sms To 1.The Appellate Deputy Commissioner (CT), Trichy.

2.The Assistant Commissioner (CT), Srirangam Assessment Circle, Trichy.

+1CC to Spl.Government Pleader Sr.No.7425 +1CC to Mr.S.Karnakar Advocate Sr.No.7207 GJM/SKS/RR/SAR-I-3p-5C Writ Petition (MD) No.2594 of 2016 05.02.2016