K M MUNISWAMAPPA Vs. STATE OF MYSORE

JUDGEMENT

(1.) The turnover of Muniswamappa who is a dealer in Doddaballapur was assessed by the Commercial Tax Officer in respect of the assessment years 1958-59, 1959-60 and 1960-61 and he was called upon to pay the tax determined by those orders of assessment. Muniswamappa preferred appeals from those orders of assessment to the Deputy Commissioner under section 20 of the Mysore Sales Tax Act and asked for a stay of the enforcement of the orders made by the Commercial Tax Officer. On those stay applications the Deputy Commissioner made an order on 19th February, 1968, calling upon the appellant to furnish a bank guarantee in respect of the sum of money due from him under the orders of assessment. Against this order, the petitioner preferred appeals to the Mysore Sales Tax Appellate Tribunal complaining against the insistence on the production of a bank guarantee. Those appeals were dismissed by the Tribunal on the ground that the Deputy Commissioner had the discretion to select the form of security to be furnished by the petitioner and also on the further ground that the petitioner's Advocate consented to the production of the bank guarantee when the Deputy Commissioner made his order.

(2.) In these three revision petitions which are presented against the order made by the Sales Tax Appellate Tribunal, Mr. Katageri appearing for the petitioner contends that the Deputy Commissioner had no competence to insist on the production of a bank guarantee. This argument is maintained on the ground that the insistence on the production of a bank guarantee is authorised only by rule 30-B of the Mysore Sales Tax Rules which was not in force when the petitioner produced his returns before the Commercial Tax Officer, and that the provisions of that rule, which came into force only on 20th November, 1962, had no application to proceedings which commenced with returns presented before it came into force.

(3.) In support of his submission Mr. Katageri asked attention to the proviso appearing under section 20(5) of the Mysore Sales Tax Act, 1957, as it then stood. It reads :