1990 (1) TMI 283

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....itself is unsustainable as rule 31 of the Tamil Nadu General Sales Tax Rules, 1959, does not impose a condition that the security should be either in the form of immovable property or in the form of bank guarantee. Under rule 31(1) of the Rules, a person who prefers an appeal or revision against the order of assessment may furnish personal or property security along with the security bond in form XIX or a bank guarantee in form XIX-C as the authority before whom the appeal or application is preferred may, in its discretion, direct. 2.. Under rule 31(2) of the Rules, when an applicant or appellant furnishes security referred in sub-rule (1) or any other form of security referred to in sub-rule (15-A) of rule 24, he shall file the security....

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....ssue a mandamus to the second respondent also to do his duty in accordance with law. The return of the stay application by the second respondent directing the petitioner to present the same before the assessing officer along with the security bond is wholly against the relevant rules. 4.. As I had already pointed out under rule 31(1), it is the appellate authority who has to pass an order relating to furnishing of security, before passing an order of stay. It may be open to him in appropriate cases to grant stay even without furnishing any security as the question will arise only when he decides that the appellant before him should furnish security as a condition for the grant of stay. In that event he shall specify the form of security,....