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2019 (7) TMI 1198 - HC - VAT and Sales TaxRequirement with the compliance of security deposit - HELD THAT:- In the light of the undisputed position as far as the seven writ petitioners are concerned, this Court has no difficulty in accepting the submission of learned Standing Counsel for Salem City Municipal Corporation that the fiscal authority has taken 15% as the tax payable for the purpose of computing security deposit under by-law 6, which has been extracted and reproduced - A further careful and close reading of by-law 6 reveals that the method of computation contemplated in 6.2 of the by-laws is that the security deposit is based on 'full capacity of the auditorium for a period of seven days'. Security deposit is for the purpose of ensuring that if there is any default in payment of tax, the exchequer is not left high and dry. Therefore, this Court finds no illegality in the second respondent adopting 1 ½ half times of tax payable i.e., 15% in this scenario for arriving at the security deposit that has been demanded. Mode of deposit - HELD THAT:- Though a part of the security deposit has been received by way of a cheque drawn in favour of the second respondent, in the light of the submissions made on instructions by Standing Counsel that the cheques have since been encashed and the monies have been deposited to Municipal Fund of cash, which is a permitted mode of deposit, this Court finds no infirmity or illegality in the mode of deposit also. Petition dismissed.
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