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2001 (4) TMI 883 - HC - VAT and Sales Tax
Issues:
Challenge to refusal of separate registration under Madhya Pradesh General Sales Tax Act, 1958. Analysis: The petition challenges the refusal of separate registration by the sales tax authorities under the Madhya Pradesh General Sales Tax Act, 1958. The petitioner, a limited company formed by members of a family previously operating as a partnership firm, applied for temporary new registration for their new unit No. 2. The Sales Tax Officer initially rejected the application, but the Deputy Commissioner allowed the revision and set aside the order due to lack of proper inquiry. After further inquiry, the sales tax authorities rejected the application, leading to the petition. The main argument of the petitioner was that authorities erred in rejecting the application, emphasizing the transition from a firm to a limited company and the establishment of new units. The State, on the other hand, supported the rejection, stating that the inquiry revealed discrepancies and no new unit was actually set up. The court found no merit in the petition, emphasizing the necessity for a genuine application and proper inquiry before granting registration under sections 16 and 16-B of the Act. The court highlighted that the authorities found the petitioner did not cooperate in the inquiry, failing to produce requested account books. It was concluded that no new unit existed, and the earlier registration for production starting in March 1993 was valid. The court upheld the authorities' decision based on factual findings, stating that the petitioner's claim for a new unit was a disguise. This factual finding was deemed binding in the writ jurisdiction, rendering other legal arguments irrelevant. Consequently, the court dismissed the petition, upholding the impugned orders and ordering the refund of any deposited security amount.
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