https://www.taxtmi.com/caselaws?id=152923 Security under section 6(7)(i) of the Rajasthan Sales Tax Act could be demanded only on recorded, objective reasons showing that it was necessary to ensure proper tax payment or to safeguard the custody and use of declaration forms. The HC found no material showing default, misuse of declaration forms, financial instability, or any other factual basis for the demand, and held that a vague reference to common knowledge and discretion was insufficient. The power had to be exercised on sound principles, not routinely or arbitrarily. The security demand was therefore illegal and unsustainable, and was set aside. en-us Mon, 29 Oct 1979 00:00:00 +0530 Fri, 12 Jul 2013 18:20:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152923 Security under section 6(7)(i) of the Rajasthan Sales Tax Act could be demanded only on recorded, objective reasons showing that it was necessary to ensure proper tax payment or to safeguard the custody and use of declaration forms. The HC found no material showing default, misuse of declaration forms, financial instability, or any other factual basis for the demand, and held that a vague reference to common knowledge and discretion was insufficient. The power had to be exercised on sound principles, not routinely or arbitrarily. The security demand was therefore illegal and unsustainable, and was set aside. Case-Laws VAT and Sales Tax Mon, 29 Oct 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152923