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2018 (9) TMI 298 - HC - VAT and Sales TaxFurnishing an irrevocable Bank Guarantee for the outstanding amount - Stay against the recovery of the alleged amount due sought - Section 62(4)(c)(i) of the KVAT Act - Held that:- Where Appellate Authority considers an application for an interim relief and decides to stay the payment of the alleged due amount, then it can give a stay only for 70% of the tax alleged to be due and the remaining 30% has to be paid by the appellant before it - Sub Section (i) of Section 62(4)(c) of the K.V. Act does not specifically mention that the Appellate Authority while granting stay of the impugned order for the remaining 70% of the alleged tax due can also call for the appellant to furnish any security including the Bank Guarantee for the said sum. Admittedly, the application filed by the petitioner herein before respondent No.2 as an appellant was not pending beyond a period of 30 days and that there was no deemed grant of an interim order of stay. As such, it is Section 62(4)(c)(i) of the K.V.A.T. Act is applicable, which does not specifically mention about furnishing of Bank Guarantee or other security for the remaining sum of 70% - requirement of furnishing of Bank Guarantee set aside - petition allowed - decided in favor of petitioner.
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