TMI Blog2021 (4) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... ached. Where the security bond is executed as an individual person and further as per Section 21(2-B) of the TNGST Act, where it appears necessary to the authority granting a certificate of registration under this Section, so to do for the proper realisation of the tax payable under this Act, it may, at any time, while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the dealer to whom the certificate has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security or, if the dealer has already furnished any security in pursuance of an order under this sub-section or sub-section (1-A) such additional security, as may be specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed an application for registration on 27.08.1992 under Section 21 of the Act, as a Proprietor concern for carrying on the business of buying and selling cotton waste in the name of Sri Angalamman Traders. 3. As per Section 21(1-A) of the TNGST Act, 1959, the respondent directed to furnish security, which shall not exceed one and half of the tax payable on the estimated taxable turnover disclosed in the application for registration, which is only ₹ 2,500/-. Accordingly, the petitioner executed a security bond on 02.09.1992 in Form XIX B, by furnishing her properties in Singanallur as a security towards the sum due by the firm, whenever occurs. 4. It is admitted that the petitioner was not a partner of the firm and not particip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision, the learned counsel submits that it is to be read along with Rule 24(15-A) of the Tamil Nadu General Sales Tax Rules, the registration of mortgage property, which is given by way of security as mandatory. 8. In the present case on hand, admittedly, there was no mortgage of property registered and therefore, the actions initiated against the entire property belongs to the petitioner is void ab initio. 9. Learned counsel appearing on behalf of the respondent disputed the contentions by stating that, while registering the business by Mr.V.Kadhirvel, the petitioner executed a security bond. The nature of security is well enumerated in the security bond itself. The security bond was executed in clear terms, so as to recover the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the owner of the immovable property mentioned in the security bond and she has got an absolute right. Only in the eventuality of nonpayment by the Proprietor of the business, then alone the respondent- Department gets the right to invoke the provisions and initiate action to recover from the person, who has given security and against the immovable property. Thus, there is no direct right vest on the respondent-Department to initiate action against the property given by way of security bond. Under those circumstances, the registration is not required and therefore, the very contention raised by the petitioner, in this regard, is unsustainable. 13. This Court is of the considered opinion that in respect of certain documents, compulsory reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as wife of the Proprietor and she executed the same in her capacity as an 'individual person' and she has given an undertaking that in the event of non-payment of statutory dues, the immovable property given by way of security can be attached. 18. This being the very spirit of the security bond, now the petitioner cannot turn around and say that her liability is limited and this even incidental also, the wife being Class I legal heir successor, she is entitled both right to acquire the property and liable to clear the dues under the Law. However, the said ground is unnecessary with reference to the facts and circumstances of the present case is concerned. 19. As far as the facts on hand is concerned, it is clear that where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escape from the payment of statutory dues, this Court is of an opinion that the provisions are to be interpreted pragmatically and constructively, so as to ensure that the purpose and object of the Statute are meted out and the public interest is protected. Thus certain Rules or guidelines formulated for the purpose of implementing the provisions of the Act and time limits or certain procedures, guidelines contemplated are to be construed as directory and cannot be held as mandatory. 22. Certain guidelines, procedures and rules are made for the convenience of the authorities to maintain consistency in implementation of the provisions of the Act and such procedures are to be interpreted with reference to the spirit of the provisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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