Interim security bond lapses on final disposal unless expressly continued, so retained bond had to be returned to the assessee.

Security furnished under an interim order in a writ appeal ordinarily lapses on final disposal unless the court expressly continues it. Here, the bond was taken only as an interim measure, no direction preserved it after disposal of the appeal, and the later allowance of the assessee's statutory appeal confirmed that there was no basis to retain it. The bond was therefore required to be cancelled and returned to the assessee.

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Issues: Whether the security bond furnished pursuant to an interim order in the earlier writ appeal was liable to be cancelled and returned after final disposal of the appeal and the subsequent allowance of the assessee's statutory appeal.

Analysis: The security was directed only as an interim measure during the pendency of the writ appeal. No further direction was issued at the time of final disposal to keep the security alive till the departmental proceedings concluded. An interim order ordinarily comes to an end on final disposal unless expressly continued. In the absence of such continuation, the bond ought to have been returned. The subsequent allowance of the assessee's appeal reinforced the absence of any reason to retain the bond.

Conclusion: The bond was directed to be returned to the assessee.

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