2016 (8) TMI 2

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.... account various factors involved in the matter. The petitioner submits that as far as the firm M/s.Khushi Intergroup Corporation was concerned, the turnover of the firm has no basis to estimate the turn over of the present firm which is about to be started. Therefore, the demand is highly exorbitant and is not in accordance with the Statute. It is also submitted that the firm M/s.Khushi intergroup Corporation Ltd had not filed their return during the relevant time and therefore assumption of the turnover was absolutely baseless. It is also submitted that subsequently, the return had been filed on 5.7.2016 as evident from Ext.P7 and the tax liability had been calculated. Therefore, the assumption that the present firm will be a substitute t....

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.... that, the officer is deprived of any power for demanding security deposit more than what is stated in Ext.P5, especially, in the light of the wordings in Section 17 (2) which reads as follows: "Notwithstanding anything contained in sub-section (1), the registering authority may, at the time of registration, demand security by order in writing, from every dealer effecting first sale of goods within the State an amount not exceeding one half of the tax effecting first sale of goods within the State an amount not exceeding one half of the tax payable on the turnover of the dealer for the year as estimated by the registering authority: Provided that the registering authority shall have the power to demand at any time additional security ....