Court Rules Against Heavy Tax Penalties for Unregistered Direct Sales, Highlights Need for Contextual Financial Measures.

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....Quantum of amount to be deposited for release of detained good - Requirement of furnishing of Bank Guarantee for a sum being twice the amount of tax payable - By effecting a direct sale from Tamil Nadu without obtaining registration, the petitioner at best can be said to have violated the provision relating to the procedure. By the effecting sale from State of Tamil Nadu, the petitioner avoided criss-cross movement of the goods - Therefore, the petitioner cannot be subjected to higher tax as the officers acting as assessing officer under the Central Sales Tax Act, 1956 act as counterparts of each other. - HC....