https://www.taxtmi.com/caselaws?id=161337 Cash security required for issuance of form XXXI must bear a reasonable nexus with the tax likely to be payable and cannot be fixed arbitrarily. The Court noted that section 8-C(3) caps security at the tax payable, reinforcing that security under section 8-C(3-A) must be based on a rational estimate of liability. A demand fixed only by reference to the highest quality of stone ballast, without grading the commodity or assessing the actual tax likely to arise, was unreasonable. Freight separately charged should also be excluded from the basis for cash security. The circular was quashed as violative of Article 14, and the security was directed to be re-fixed on a rational basis. en-us Fri, 07 Feb 2003 00:00:00 +0530 Wed, 15 Jan 2014 18:46:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161337 Cash security required for issuance of form XXXI must bear a reasonable nexus with the tax likely to be payable and cannot be fixed arbitrarily. The Court noted that section 8-C(3) caps security at the tax payable, reinforcing that security under section 8-C(3-A) must be based on a rational estimate of liability. A demand fixed only by reference to the highest quality of stone ballast, without grading the commodity or assessing the actual tax likely to arise, was unreasonable. Freight separately charged should also be excluded from the basis for cash security. The circular was quashed as violative of Article 14, and the security was directed to be re-fixed on a rational basis. Case-Laws VAT and Sales Tax Fri, 07 Feb 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161337