Allowed

Jameel Trading Company v. the Appellate Assistant

Madras HC11 Jan 2013WP/1165/2013

Case brief

AI extract

What is this about?

The High Court allowed a writ petition challenging an order requiring a bank guarantee as security for tax. The court modified the condition, reducing the bank guarantee amount to Rs. 25,000 and substituting a personal bond for the balance security.

What did the court decide?

Petitioner directed to furnish Bank Guarantee of Rs. 25,000 and Personal Bond for balance Rs. 1,51,960 within 15 days.

Jameel Trading Company Vs the Appellate Assistant — Writ and Judicial Review | Madras HC (2013)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 11.1.2013

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CORAM

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THE HONOURABLE MR. JUSTICE R.SUDHAKAR

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Writ Petition No.1165 of 2013

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Jameel Trading Company, represented by its Partner, Saifee, No.76, Sembudoss Road, Chennai-600 001. ... Petitioner vs. 1.The Appellate Assistant Commissioner (CT)-I (FAC), VI Floor, Kuralagam Annexe,

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Chennai-108

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presently at C.T. Buildings, Greams Road,

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Chennai-600 006.

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2.The Assistant Commissioner(CT),

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Harbour III Assessment Circle, 7^th Floor, Wavoo Complex, NSC Bose Road, Chennai-1. ... Respondents

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Writ Petition is filed under Article 226 of Constitution of India praying to issue a Writ of Certiorari, to call for the records of the first respondent in S.P.No.14/12 in CST/AP No.10/12 and quash the order dated 18.12.2012 so far as the condition of furnishing of security for the balance of 50% of the tax in the form of immovable property or bank guarantee is concerned pending disposal of the appeal.

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For Petitioner : Mr.R.Kumar

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For Respondent : Mr.Manoharan Sundaram, Government Advocate(Tax). O R D E R

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This Writ Petition is filed praying to issue a Writ of Certiorari, to call for the records of the first respondent in S.P.No.14/12 in CST/AP No.10/12 and quash the order dated 18.12.2012 so far as the condition of furnishing of security for the balance of 50% of the tax in the form of immovable property or bank guarantee is concerned pending disposal of the appeal.

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https://hcservices.ecourts.gov.in/hcservices/

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Mr.Manoharan Sundaram, learned Government Advocate (Tax) takes notice for the respondents. By consent, the writ petition is taken up for final disposal.

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The subject matter of the appeal is the demand for tax for Rs.3,56,445/-. Petitioner states that he has paid a sum of Rs.88,493/- towards 25% of the disputed tax at the time of filing the appeal. The Appellate Authority thought it fit to impose a condition to pay a further sum of Rs.88,488/- amounting to 25% of the disputed tax. Further, for the balance amount of tax amounting to Rs.1,76,960/-, petitioner was directed to furnish valid security in the form of Bank Guarantee obtained from any of the National Banks.

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After payment of the second installment of Rs.88,488/- being 25% of the disputed tax amount, petitioner is before this Court seeking modification of the order insofar as imposing the condition to submit bank guarantee. Petitioner states that for the purpose of bank guarantee petitioner will have to deposit entire amount in the bank. Hence, the condition is onerous and is causing serious prejudice to the petitioner company. The petitioner company already suffers great financial hardship and irreparable loss. On this plea petitioner seeks modification of the order.

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In view of the above, this court is inclined the modify the impugned order as follows:-

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(1) Petitioner is directed to furnish a valid security for a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) in the form of Bank Guarantee obtained from any of the National Banks as ordered by the appellate authority within fifteen days from the date of receipt of a copy of this order.

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(2) For the balance amount, namely, Rs.1,51,960/- (Rupees One Lakh Fifty One Thousand Nine Hundred and Sixty only), petitioner is directed to furnish a personal bond within a period of fifteen days from the date of receipt of a copy of this order.

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(3) Failing to comply with the above conditions, the above modification shall stand automatically vacated.

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The Writ Petition is ordered as above. No costs. Sd/Asst.Registrar

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/true copy/

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Sub Asst.Registrar

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https://hcservices.ecourts.gov.in/hcservices/

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ts
To
1.The Assistant Commissioner(CT),
Harbour III Assessment Circle,
7 th Floor, Wavoo Complex,
NSC Bose Road,
Chennai-1.
2.The Appellate Assistant
Commissioner (CT)-I (FAC),
VI Floor, Kuralagam Annexe,
Chennai-108
presently at C.T. Buildings,
Greams Road,
Chennai-600 006.
1 cc to Mr.R.Kumar, Advocate, SR.No.2635
+1 cc to Spl.Government Pleader (Taxes) SR.2808
Order in
W.P.No.1165 of 2013
RK {CO}
TP/18.1.2013.

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https://hcservices.ecourts.gov.in/hcservices/

Jameel Trading Company v. the Appellate Assistant

Case brief

What is this about?

What did the court decide?

Jameel Trading Company v. the Appellate Assistant

Case brief

What is this about?

What did the court decide?

What the court decided

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