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2019 (8) TMI 481 - HC - VAT and Sales TaxDemand of bank guarantee as security - stay on recovery proceedings - HELD THAT:- It is clear that under Rule 37(1) of the U.P. Value Added Tax Rules, 2008, the respondents would have demanded the petitioner to deposit security in any of the forms as mentioned in the said rule and that bank guarantee is not provided as one of the measures for demanding the security. A coordinate Bench of this Court after considering the entire legal aspects of the matter in the case of EMAMI LIMITED VERSUS STATE OF U.P. AND ORS. [2007 (12) TMI 526 - ALLAHABAD HIGH COURT] has held that in the circumstances, as existing in the present case also, the demand of bank guarantee by the Assessing Authority cannot be justified. This court bears in mind that security which is to be given should be such that it protects the interest of the Revenue, in case of any default by the assessee - the statutory provision as contained in Rule 37(1) of the U.P. Value Added Tax Rules, 2008 is to be followed. Petition disposed off.
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