TMI Blog1984 (6) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... on itself is taken up for disposal to-day after notice to the Government Advocate for Commercial Tax Cases and hearing his arguments. 3.. Consequent on the third respondent passing an order of assessment, the petitioners have filed an appeal before the second respondent and pending disposal of the appeal, they prayed for stay of collection of the disputed tax amount. By way of security for the disputed tax amount, the petitioners have offered bank guarantee. The second respondent has passed orders on the stay application directing the petitioners to pay the disputed tax in six equal monthly instalments, subject to the condition that if there is default in payment of any one instalment, the balance outstanding will become payable in lump s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hyderabad [1967] 19 STC 50, Chesebrough Pond's Inc. v. Appellate Assistant Commissioner (CT) III, Madras-I [1973] 32 STC 464, K. Venkatesh Co. v. Commercial Tax Officer, Arsikere (Hassan Dist.) [1981] 47 STC 115 and Laxmi Ginning and Oil Mills v. Deputy Excise and Taxation Commissioner (Appeals), Patiala [1978] 41 STC 127. It has been held by this Court in C.K. Palanivelu Chetty and Sons v. Deputy Commissioner of Commercial Taxes, Madras-7 [1963] 14 STC 656 as follows: "No doubt, the exercise of power under the proviso is discretionary. But, where a statute entrusts a taxing authority with such discretionary power, the discretion must be exercised according to law and reason, and neither arbitrarily nor according to whims. The petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee pending disposal of the appeal preferred by him, the appellate authority has got to exercise its discretionary powers of stay in a judicial manner and it cannot pass a mechanical or stereotyped order. Since the impugned order does not reflect the consideration of the relevant factors for refusing to grant absolute stay to the petitioners and for not accepting the bank guarantee offered by them for the disputed tax amount till the disposal of the appeal, the petitioners are entitled to have the same quashed. Accordingly the impugned order of the second respondent will stand quashed. However, it is not possible to issue a writ to the second respondent to accept the security offered by the petitioners and grant an order of absolute stay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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