https://www.taxtmi.com/caselaws?id=150459 Security under section 9(3a) of the Orissa Sales Tax Act, read with rule 7-A, is valid only when supported by objectively demonstrable good and sufficient reasons and when the amount demanded is reasonable and proportionate to the estimated annual tax liability. The enquiry is quasi-judicial, so the dealer must receive a pre-decisional opportunity of hearing before security is demanded. A demand based on irrelevant considerations, a mistaken assumption that every registered dealer must furnish security, or an excessive amount is arbitrary and bad. The impugned security demand was quashed, while the authority was left free to proceed afresh in accordance with law and natural justice. en-us Mon, 09 Oct 1972 00:00:00 +0530 Fri, 17 May 2013 11:15:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150459 Security under section 9(3a) of the Orissa Sales Tax Act, read with rule 7-A, is valid only when supported by objectively demonstrable good and sufficient reasons and when the amount demanded is reasonable and proportionate to the estimated annual tax liability. The enquiry is quasi-judicial, so the dealer must receive a pre-decisional opportunity of hearing before security is demanded. A demand based on irrelevant considerations, a mistaken assumption that every registered dealer must furnish security, or an excessive amount is arbitrary and bad. The impugned security demand was quashed, while the authority was left free to proceed afresh in accordance with law and natural justice. Case-Laws VAT and Sales Tax Mon, 09 Oct 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150459