https://www.taxtmi.com/caselaws?id=150469 Security demanded as a condition for registration under the Punjab General Sales Tax Act must be proportionate to the dealer's probable tax liability, business nature and turnover. Where the business is newly established, capital and turnover are modest, and the disclosed tax liability is small, an onerous cash security may be arbitrary and disabling rather than regulatory. Past conduct may be considered, but it cannot justify a prohibitory burden that prevents the dealer from carrying on business. The impugned demand of cash security was held excessive and liable to be quashed, with reconsideration directed on the basis of a reasonable security and permissible part-payment under the rules. en-us Mon, 22 May 1972 00:00:00 +0530 Fri, 17 May 2013 12:17:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150469 Security demanded as a condition for registration under the Punjab General Sales Tax Act must be proportionate to the dealer's probable tax liability, business nature and turnover. Where the business is newly established, capital and turnover are modest, and the disclosed tax liability is small, an onerous cash security may be arbitrary and disabling rather than regulatory. Past conduct may be considered, but it cannot justify a prohibitory burden that prevents the dealer from carrying on business. The impugned demand of cash security was held excessive and liable to be quashed, with reconsideration directed on the basis of a reasonable security and permissible part-payment under the rules. Case-Laws VAT and Sales Tax Mon, 22 May 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150469