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2016 (9) TMI 407 - HC - VAT and Sales TaxValidity of recovery proceedings - attachment of residential property of the surety (mother) of firm in which her son is a partner - Section 12 read with Rule 28(8) of the Andhra Pradesh General Sales Tax Act and Rules, 1957 - Held that: - It is settled law that the surety given by a person, on behalf of the assessee, would remain in force against the tax payable under the APGST Act for a year as estimated by the assessee. As the estimated turnover declared in Form D is ₹ 20,00,000/-, and the rate of tax during the said period was 4%, the liability of the surety, to pay the tax arrears of the partnership firm, is only upto ₹ 80,000/- and not beyond - the impugned demand notice, to the limited extent the surety was called upon to pay an amount in excess of ₹ 80,000/-, is set aside. The respondents may proceed and recover the arrears of tax, due from the partnership firm, upto a limit of ₹ 80,000/- from the petitioner-surety under the Revenue Recovery Act - It is made clear that this order shall not preclude the respondents from proceeding against the partnership firm, or its partners, for recovery of the balance arrears of tax due - petition disposed off - decided in favor of petitioner.
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