Security bond over immovable property can be enforced for tax arrears when the bond creates a charge for the dealer's dues.

Immovable property furnished as security for registration under the statutory bond and form could be proceeded against for recovery of the registered dealer's tax arrears. The bond expressly created a charge over the property in favour of the Government, and the description of the owner as a surety did not change the legal effect of the security. Because the property was bound by the terms of the security, the revenue authority had jurisdiction to enforce recovery against it even though the appellant was neither the registered dealer nor the tax defaulter. The challenge to attachment and recovery therefore failed.

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Issues: Whether the property offered under the security bond could be proceeded against for recovery of tax arrears under the Tamil Nadu General Sales Tax Act, 1959 despite the appellant not being the registered dealer or tax defaulter.

Analysis: The security bond and the governing rules required security to be furnished for registration, and when immovable property was furnished, the statutory form contemplated a mortgage or charge in favour of the Government. The bond executed by the appellant expressly created a charge over the property and bound it for dues payable by the registered dealer. The description of the appellant as a surety flowed from the bond itself and did not alter the legal effect of the security furnished. In light of the bond terms and the rules, the respondent had jurisdiction to proceed against the secured property for recovery of the arrears.

Conclusion: The challenge to recovery from the appellant's property failed and the proceeding against the secured property was held to be valid.

Final Conclusion: The appeal was rejected because the security created for registration purposes was enforceable against the property for recovery of the dealer's tax dues.

Ratio Decidendi: Where a person furnishes immovable property as security for registration under the statutory form and bond, the property can be proceeded against for recovery of the dealer's tax arrears in accordance with the terms of that security.

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