TMI Blog2016 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... be produced by the dealer. In fact it seems from Ext.P3 that, in the absence of any such material, the officer had proceeded to make the estimate on the basis of the turnover of M/s.Khushi International, the other firm. Primarily I do not find any error in the view taken by the Registering Authority, though it might be contended that the amount claimed is exorbitant. However, since the petitioner had relied upon Ext.P7 the return filed by M/s.Khushi International, the tax liability can be easily found out from the said document itself and the Registering Authority has to consider the same before taking a final decision in the matter. I am of the view that Ext.P7 may have relevance while conducting an enquiry in terms of Section 17 (2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm will be a substitute to the earlier firm, is absolutely baseless. 2. Counter affidavit has been filed by the respondent supporting the stand taken by Ext.P3. It is sated that one Pushkar Dutt Bansal who is going to be a partner of present firm M/s.Khushi Intergroup Corporation was admittedly a partner of M/s.Khushi International. Their total turnover during the year 2015-16 is more than ₹ 19 crores with a tax liability of more than 1.58 crores. It is in the said circumstances that, invoking Section 17(2) of the KVAT Act the petitioner is called upon to furnish security. 3. The learned Government Pleader submits that when the partners themselves had submitted that they are going to wind up M/s.Khushi International and const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any time additional security if such authority has reason to believe that the turnover estimated under sub-sections (1) or (2) was too low. Provided further that no security or additional security shall be demanded under this sub-section from a dealer falling under clause (ii) of sub-section (2) of section 15; 4. Therefore, there cannot be any dispute regarding the power of the officer in calling upon a dealer to furnish security not exceeding of the tax payable on the turnover of the dealer for the year as estimated by the Registering Authority. In cases where a new dealer seeks for registration, the Registering Authority is under obligation to estimate regarding the turnover of the dealer which apparently has to be based on cer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
