MAHALAKSHMI TILES Vs. SECRETARY, SALES TAX APPELLATE TRIBUNAL (AB); APPELLATE ASSISTANT COMMISSIONER, (COMMERCIAL TAXES) AND THE COMMERCIAL TAX OFFICER (FAC)

JUDGEMENT

(1.) Heard Mr. S. Karunakar, learned Counsel appearing for the petitioner and Mr. V. Rajasekaran, learned Government Advocate, who took notice on behalf of the respondents.

(2.) Succinctly and precisely the case of the petitioner is that against the order of assessment relating to the assessment year 2005-2006, the petitioner filed appeal before the first respondent in MTP. No. 195 of 2008; the first respondent, by the conditional order dated 19.11.2008, directed the petitioner to furnish Bank guarantee or sufficient security to the satisfaction of the Assessing Officer concerned for 50% of the penalty amount of Rs. 4,45,634/- (Rupees four lakhs forty five thousand six hundred and thirty four only) on or before 31.12.2008 and the remaining amount is stayed till the disposal of the appeal. Being aggrieved by regarding the direction for furnishing of security, the writ has been filed. In the affidavit, it is found stated by the petitioner that he does not own any immovable property free from encumbrances and has no liquid resource to take a bank guarantee nor pay the balance of arrears. Hence, the prayer to quash the impugned order.

(3.) In several similar matters, this Court modified the conditions. Considering the facts and circumstances of this case and the submissions made on either side and keeping in view the fact that there is automatic charge is available under Section 24(2) of the Tamil Nadu General Sales Tax Act, on the properties of the defaulting assessee, the condition imposed by the first respondent is modified as follows: