Personal bond instead of bank guarantee as condition for stay of assessment order allowed

Royal Welding Wires Private Limited Vs Deputy Commissioner (CT) (Madras High Court)

Madras High Court allowed the writ petition and directed acceptance of personal bond instead of bank guarantee, as condition for stay of assessment order, pending disposal of appeal in VAT demand matter.

Facts- Present Petition is filed under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus to call for the impugned proceedings of the first respondent passed and to quash the same insofar as directing the petitioner to furnish Bank Guarantee for balance tax amount and further direct the second respondent to accept personal bond instead of Bank Guarantee pending disposal of appeal.

The petitioner is aggrieved by the conditions imposed by the first respondent while granting stay of the impugned assessment orders in the Appeals filed by them.

Conclusion- These writ petitions are disposed of by directing the first respondent to accept the Personal Bond of the petitioner in lieu of the Bank Guarantee amounts, mentioned in the impugned orders dated 02.02.2023 and 30.01.2023 and the petitioner is directed to execute a Personal Bond as directed supra, within a period of one week from the date of receipt of a copy of this order. On receipt of the Personal Bond from the petitioner as stated supra, in lieu of the Bank Guarantee, the first respondent is directed to pass final orders on the petitioner’s Statutory Appeals within a period of four weeks thereafter.

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