https://www.taxtmi.com/caselaws?id=161248 Security for tax registration under Section 21(2-B) of the Tamil Nadu General Sales Tax Act, 1959 can be demanded only when necessary for proper realisation of tax, and Section 21(2-C) requires a hearing and limits the quantum. A demand based on proving the genuineness of business transactions was outside that statutory basis, and the authority had failed to apply the governing provisions. The imposed security requirement, including the cash deposit demand in a nationalised bank, was arbitrary and excessive. The demand for security deposit was therefore held not legally sustainable and was set aside in favour of the assessee. en-us Tue, 12 Mar 1996 00:00:00 +0530 Fri, 10 Jan 2014 17:25:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161248 Security for tax registration under Section 21(2-B) of the Tamil Nadu General Sales Tax Act, 1959 can be demanded only when necessary for proper realisation of tax, and Section 21(2-C) requires a hearing and limits the quantum. A demand based on proving the genuineness of business transactions was outside that statutory basis, and the authority had failed to apply the governing provisions. The imposed security requirement, including the cash deposit demand in a nationalised bank, was arbitrary and excessive. The demand for security deposit was therefore held not legally sustainable and was set aside in favour of the assessee. Case-Laws VAT and Sales Tax Tue, 12 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161248