Personal security under sales tax rules must be considered, with recovery stayed pending prompt disposal of the appeal.

Rule 31 of the Tamil Nadu General Sales Tax Rules allows an assessee to furnish personal or property security, and the assessing authority should consider security offered on the assessee's behalf rather than refuse it without examination. Because the appeal concerning the assessment year was pending, the matter required prompt disposal of the appeal and interim protection against coercive recovery. The assessee was therefore entitled to consideration of the security bond, the appeal was to be decided within the stipulated time, and recovery of the demand was stayed until then.

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Issues: Whether, under rule 31 of the Tamil Nadu General Sales Tax Rules, the assessee could be required to have the personal security offered on its behalf considered by the assessing authority, and whether interim protection should be granted pending disposal of the appeal.

Analysis: Rule 31 permits an assessee to furnish personal or property security. The refusal to even examine the security bond offered on behalf of the assessee was therefore not justified. Since the main appeal was pending and related to the assessment year in question, the matter called for prompt disposal of the appeal and protection against coercive recovery until then.

Conclusion: The assessee was entitled to consideration of the security offered, the authority was directed to dispose of the appeal within the stipulated time, and collection of the demand was stayed till then.

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