1979 (10) TMI 209

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....ted 27th November, 1978, directing the petitioner to furnish security in the amount of Rs. 25 lacs under section 6(7)(i) of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as the "Act"). The petitioner is a registered dealer under the Rajasthan Sales Tax Act, 1954, and has its industrial complex at Kota, known as Sriram Chemical Industry and Sriram Rayons. It has also vanaspati depots and departmental stores of textiles at Jaipur and various other places in Rajasthan. The petitioner's case is that it has always been submitting the returns regularly and has never committed defaults in paying the sales tax in time. It has averred that there has not been a single occasion when the petitioner has committed default in submitting....

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.... relevant provisions contained in section 6(7)(i) of the Act. In order to appreciate the contention raised on behalf of the petitioner, we may reproduce here section 6(7)(i) of the Act for ready reference: "Section 6. (7)(i) Where it appears to the assessing authority necessary so to do for ensuring proper payment of tax payable under this Act or for proper custody and use of declaration forms issued under the provisions of this Act or the Rules, he may, by order in writing and for reasons to be recorded, demand from any dealer who had been registered or has applied for registration under this section or under section 6A or section 6B or section 9, a security to be furnished in the prescribed manner and within the time specified in th....

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.... may suddenly result in losses so that it may be necessary to safeguard the interests of the revenue for future. However, the Commercial Taxes Officer has observed as follows: "It is also common knowledge that the assessee obtains declarations in a huge quantity and there are cases of misuse of declarations in C forms by the assessee."   It is not at all clear to us whether the assessee had ever made any misuse of the declaration forms in the past and we fail to understand what the Commercial Taxes Officer means by saying that "it is common knowledge". Does he refer to the general malpractice prevailing among the assessees or is he referring to the petitioner? In our opinion, he seems to be referring to the assessees in general a....