https://www.taxtmi.com/caselaws?id=282417 Under section 10(8) of the U.P. Trade Tax Act, the Assessing Authority's discretion to demand adequate security is limited by rational and non-arbitrary considerations. Cash security or a bank guarantee cannot be insisted upon as a matter of whim; reasons should ordinarily support such a demand, especially where stronger protection of revenue is claimed. A bank guarantee is justified only on cogent grounds, while cash security may be appropriate where the assessee is shown to be wholly untrustworthy. On the facts described, the assessee was an established and continuing taxpayer, so insisting on a bank guarantee was not justified. en-us Wed, 05 Dec 2007 00:00:00 +0530 Wed, 07 Aug 2019 10:53:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282417 Under section 10(8) of the U.P. Trade Tax Act, the Assessing Authority's discretion to demand adequate security is limited by rational and non-arbitrary considerations. Cash security or a bank guarantee cannot be insisted upon as a matter of whim; reasons should ordinarily support such a demand, especially where stronger protection of revenue is claimed. A bank guarantee is justified only on cogent grounds, while cash security may be appropriate where the assessee is shown to be wholly untrustworthy. On the facts described, the assessee was an established and continuing taxpayer, so insisting on a bank guarantee was not justified. Case-Laws VAT and Sales Tax Wed, 05 Dec 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282417