https://www.taxtmi.com/caselaws?id=370373 A statutory security bond under the Kerala Value Added Tax Rules that required two sureties became unenforceable when one surety withdrew, because the rules required fresh security within sixty days and did not permit mere substitution while leaving the original bond otherwise unchanged. The Department could not rely on the earlier bond once it no longer satisfied the prescribed two-surety requirement. The analysis also noted that, under Section 133 of the Contract Act, a surety is discharged when the contractual terms are varied without consent. The demand founded on the original bond was therefore unsustainable, and liability could not be enforced under that bond. en-us Wed, 07 Nov 2018 00:00:00 +0530 Sat, 17 Nov 2018 08:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=370373 A statutory security bond under the Kerala Value Added Tax Rules that required two sureties became unenforceable when one surety withdrew, because the rules required fresh security within sixty days and did not permit mere substitution while leaving the original bond otherwise unchanged. The Department could not rely on the earlier bond once it no longer satisfied the prescribed two-surety requirement. The analysis also noted that, under Section 133 of the Contract Act, a surety is discharged when the contractual terms are varied without consent. The demand founded on the original bond was therefore unsustainable, and liability could not be enforced under that bond. Case-Laws VAT and Sales Tax Wed, 07 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=370373