Case Law Details
Burnt Umber Fashion Pvt. Ltd Vs Deputy Commissioner (CT) (Appeal) Chennai (Madras High Court)
In Burnt Umber Fashion Pvt. Ltd Vs Deputy Commissioner (CT) (Appeal) Chennai, the Madras High Court has granted a stay on the condition of furnishing a bank guarantee for the balance of the disputed tax, permitting the petitioner to provide a personal bond instead.
The case revolves around the condition imposed by the first respondent requiring the petitioner to furnish a bank guarantee for the balance of the disputed tax of Rs.12,73,884/-. The petitioner had already paid 25% of the disputed tax amounting to Rs.6,37,000/- and was directed to pay an additional sum of Rs.6,36,885/-, which they complied with.
However, the petitioner contested the necessity to provide a bank guarantee for the remaining balance of the disputed tax. They requested that this requirement be substituted with a personal bond.
The court acknowledged that similar requests had been favorably considered in the past and that personal bonds had been accepted in lieu of bank guarantees. Furthermore, the respondent’s representative did not dispute this position, and considering that the petitioner had already remitted 50% of the disputed tax, the court accepted the personal bond for the balance tax.
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