Surety bond liability is limited to the bonded period; recovery cannot extend to later periods requiring separate bonds.

Liability under a surety bond for tax exemption is confined to the period expressly covered by that bond. Recovery proceedings against the surety may be sustained only for defaults, if any, arising within the bonded period, and cannot be extended to later periods for which separate bonds were required. On that basis, recovery action against the surety was set aside to the extent it sought recovery beyond the covered period.

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Issues: Whether recovery proceedings could be initiated against the surety beyond the period covered by the surety bond furnished for the dealer's tax exemption under the relevant rules.

Analysis: The surety bond was furnished for a defined period only, and the legal consequence of the bond was limited to the period for which it was executed. Recovery against the surety could therefore be taken only for the default, if any, occurring during the covered period, and not for subsequent periods for which separate surety bonds were required.

Conclusion: Recovery proceedings against the surety could not be extended beyond the period covered by the surety bond and were sustainable only for the relevant period.

Final Conclusion: The writ petition succeeded and the impugned recovery action against the petitioner as surety was set aside to the extent it sought recovery for periods not covered by the bond.

Ratio Decidendi: Liability under a surety bond for tax-related exemption is confined to the period expressly covered by that bond, and recovery cannot be enforced against the surety for later periods requiring separate bonds.

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