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Issues:
1. Interpretation of Section 9(6)(c) of the Orissa Sales Tax Act for cancellation of registration. 2. Application of Rule 16-A of the Orissa Sales Tax Rules in cancellation of registration. 3. Requirement of an enquiry before rejecting applications for cancellation of registration. 4. Compliance with principles of natural justice in administrative decisions. Analysis: 1. The judgment dealt with applications made by four hoteliers at Puri seeking cancellation of their registration as dealers under the Orissa Sales Tax Act. The issue revolved around the interpretation of Section 9(6)(c) of the Act, which allows for cancellation of registration for "any other sufficient reason." The court acknowledged that the applications fell under this provision and referred to Rule 16-A of the Orissa Sales Tax Rules for the cancellation process. 2. Rule 16-A outlines the procedure for cancellation of registration, requiring the Assistant Sales Tax Officer to refer the matter to the Commissioner for orders after finding sufficient reasons for cancellation. The court emphasized the importance of following this rule and providing a reasonable opportunity for the dealer to be heard before making a decision on cancellation. The judgment highlighted the duty of the authority to conduct an enquiry before rejecting such applications. 3. The court noted that in the cases under consideration, there was a lack of proper enquiry conducted by the Sales Tax Officer before rejecting the applications. It emphasized that even though Rule 16-A does not explicitly mention the need for applications, it does not preclude the receipt of applications for cancellation. The court stressed the importance of affording natural justice to the applicants and allowing them to present their case before a decision is made. 4. In ensuring compliance with principles of natural justice, the court held that the rejection of the applications without affording the petitioners an opportunity to be heard was inappropriate. It directed the Assistant Sales Tax Officer to reconsider the applications, conduct necessary enquiries, and provide a chance for the petitioners to present their case before deciding on cancellation. The judgment emphasized the importance of procedural fairness and adherence to the principles of natural justice in administrative decisions. In conclusion, the court allowed the applications, quashed the impugned orders, and directed the Assistant Sales Tax Officer to reevaluate each petitioner's application in line with the principles of natural justice and procedural fairness.
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