GOLDEN ROLLS (P) LTD. Vs. STATE OF HARYANA

JUDGEMENT

(1.) CHALLENGE in the writ petition is to the recovery proceedings initiated against the petitioner as a surety on the basis of surety bond, annexure P1, dated April 3, 1993. The grievance of the petitioner is that M/s. Hilton Rubbers Limited, a registered dealer under the Haryana General Sales Tax Act, 1973, sought exemption from payment of tax under rule 28A of the Haryana General Sales Tax Rules, 1975. In terms of the rules framed, the petitioner has submitted surety bond in respect of assessment year 1993 -94. The surety bond was furnished on April 3, 1993 for the period up to June 30, 1993. Therefore, the recovery proceedings could be initiated only in respect of the default of the dealer for the period, for which the petitioner has furnished surety bonds and not in respect of subsequent period, for which the dealer was required to furnish separate surety bonds in respect of each year.

(2.) THE learned counsel for the petitioner relies upon an order passed by this court on March 26, 2013 in C.W.P. No. 21362 of 2011 titled "Om Parkash Aggarwal v. State of Haryana : (2013) 62 VST 470 (P & H)", wherein in identical circumstances, this court has held that recovery proceedings against the surety can be initiated only in respect of surety bonds for the relevant period.