TMI Blog1971 (8) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... amounted to Rs. 1,569.28 according to the A-2 returns submitted by the petitioner. Having noticed such a default, the respondent by virtue of his powers under rule 24 of the Madras General Sales Tax Rules, 1959, read with sub-section (5) of section 21 proposed to demand a security for Rs. 25,000 towards future tax liability. The petitioner was called upon to furnish such security within 5 days from that date. The petitioner submitted its explanation in its letter dated 25th May, 1967, but expressed its difficulty in paying the tax as also to furnish the security deposit as according to the petitioner the textile industry was not opulent and successful commercially and it, therefore, sought the indulgence of the respondent to dispense with s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder which the security demand was made but purporting to be in exercise of the power under sub-rule (18) of rule 24. On a perusal of the original records I find that sub-rule (15) of rule 24 is mentioned therein and therefore reliance upon the mistake which has crept in by accident, need not be considered though harped at length by the learned counsel for the petitioner. The revenue's contention, on the other hand, is that even though the petitioner ventured to state its objection to the call for security deposit, it did not offer any security other than cash as alternative security and therefore it cannot have any grievance at this stage that the demand as such is vague and not provided for under the Act. As regards the contention that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by him; and (ii) to demand from any dealer who has been registered or has applied for registration under this sub-section, security for proper payment of tax by him for an amount not exceeding one half of the tax payable on the turnover of the dealer for the year as estimated by the prescribed authority." "21. (6) No application for registration or for a copy or duplicate of the certificate and no renewal under this section shall be refused and no order under sub-section(5) shall be made, unless the dealer concerned has been given an opportunity of being heard." Though the prescribed authority shall have power for good and suffi. cient reason to demand from any dealer who has been registered or has applied for registration under thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpose, recover and collect tax on certain situations authorised under the Act, then it is but essential that certain safeguards should be made by that very Legislature to see that such tax is imposed and collected by the appropriate authorities in accordance with law and as prescribed therein. This is one of the ancillary objects which is so closely allied with the imposition and collection of sales tax. That this Act is intended to secure sales tax is not in dispute. Therefore if any provision is mainly intended as a prop to the furtherance and advancement of the main objective, namely, the imposition and collection of tax as authorised, 'then such a provision should be deemed in law to be both incidental and ancillary to the achievement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to be made out by the learned counsel for the petitioner, yet, even if a demand for cash security is made, it does not prevent the aggrieved person, namely, the assessee or the applicant for registration, to state his objections or his inconveniences for making such a cash deposit and offer an alternative security instead. The assessee did nothing of the kind in the instant case but expressed its difficulty to comply with the demand for security in cash and left it there. If the petitioner at least has offered to give alternative security and if that was refused by the department, then, possibly, the petitioner can be said to be an aggrieved person and would certainly be prejudiced thereby. No such occasion has arisen nor was it given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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