1981 (10) TMI 165

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.... the business in partnership, but has since been dissolved. The Assessing Authority, Ludhiana, assessed Messrs. Grover Brothers, the petitioner, to pay sales tax to the tune of Rs. 11,346.84 vide an ex parte order dated 4th March, 1971, for the assessment year 1965-66. Dissatisfied with this order the petitioner filed an appeal. An application under section 20 of the Punjab General Sales Tax Ac....

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....nishing security was set aside. Vide order dated 23rd June, 1971, he partly allowed the appeal and set aside the demand for furnishing security for the balance amount (a copy of the order is appended as annexure B to the petition). On appeal by the petitioner, the Presiding Officer of the Sales Tax Tribunal directed that the petitioner should deposit Rs. 2,000 instead of Rs. 4,000. He also orde....

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.... the balance amount. However, there is no provision in the Act, which may authorise the Tribunal to demand security from the dealer. At this stage, it will be useful to extract the relevant statutory provisions: Section 20(5) of the Act "No appeal shall be entertained by an appellate authority unless such appeal is accompanied by satisfactory proof of the payment of the tax or of the penalty, i....

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....wever, there is no provision for demanding security. Mr. A.S. Khaira, the learned counsel appearing for the State, has referred to sub-section (6) of section 20 of the Act, reproduced above, and argued on that basis that the appellate authority can pass any order in an appeal. This argument is based on a misconception. Section 20(6) of the Act comes into play when an appeal has been entertained....