2005 (8) TMI 642 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of cancellation of final eligibility certificate
2. Communication of the cancellation order to the petitioner
3. Rights of the petitioner under the final eligibility certificate

Analysis:

1. Validity of cancellation of final eligibility certificate:
The petitioner sought a writ of mandamus challenging the cancellation of the final eligibility certificate by the first respondent. The petitioner contended that the cancellation was illegal, lacked authority in law, and violated the principles of natural justice. The petitioner, engaged in the manufacture and sale of bakery products, was granted sales tax exemption as part of the state's industrial policy. The petitioner alleged that the cancellation was based on a complaint that the products were being sold from an ineligible location. Despite the petitioner's detailed representation, the certificate was cancelled without proper communication of the decision.

2. Communication of the cancellation order to the petitioner:
The court examined the communication of the cancellation order to the petitioner. The impugned letter dated December 21, 2004, addressed to the petitioner, stated the cancellation of the eligibility certificate. However, there were discrepancies regarding the mode of communication, with the office copy suggesting registered post while the government pleader claimed it was sent by ordinary post. The court emphasized the importance of proper communication of such decisions to the affected party to ensure procedural fairness and protect their rights.

3. Rights of the petitioner under the final eligibility certificate:
The court held that uncommunicated orders cannot be enforced, especially when they have significant civil consequences for the petitioner. It directed the respondents not to act on the cancellation order until it was properly communicated to the petitioner. The court highlighted that the petitioner's rights under the eligibility certificate should not be infringed without due process, including the right to challenge the decision once properly communicated. The subsequent actions by the respondents were made contingent upon the proper service of the cancellation order to the petitioner, ensuring procedural fairness and protection of the petitioner's rights.