Security in appeal proceedings is governed by the appellate authority's satisfaction, not the assessing authority's discretion.

Rule 31 of the Tamil Nadu General Sales Tax Rules, 1959 provides that where security is required for tax, fee, or other amounts in appeal or revision, the appellate or revisional authority before which the matter is pending may direct the form of security, including a security bond or bank guarantee, in its discretion. Section 31(5) likewise indicates that the security must satisfy the appellate authority, not the assessing authority. The statutory scheme therefore places control over the form and acceptance of security with the appellate or revisional forum, and the contrary view that the assessing authority must be satisfied is unsupported.

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Issues: Whether the requirement under Rule 31 of the Tamil Nadu General Sales Tax Rules, 1959 for furnishing security in appeal or revision is to the satisfaction of the assessing authority or the appellate authority.

Analysis: Rule 31 governs the manner in which security, security bond, or bank guarantee is to be furnished when the Act requires security for payment of tax, fee, or other amount. The rule authorises the appellate or revisional authority before whom the appeal or application is preferred to direct the form of security in its discretion. Section 31(5) of the Tamil Nadu General Sales Tax Act, 1959 likewise indicates that the security is to the satisfaction of the appellate authority and not the assessing authority. The contention that the security had to satisfy the assessing authority was therefore unsupported by the statutory scheme.

Conclusion: The requirement of security is referable to the appellate authority, not the assessing authority, and the challenge to Rule 31 failed.

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