2016 (6) TMI 1307 - HC - VAT and Sales Tax

Rejection of petitioner application as a dealer - demand of tax - rejection on the ground that the property did not belong to petitioner - principles of Natural Justice - Held that - The Registration Certificate has not been able to be issued to the petitioner, as the property did not belong to him. Also, with a view to afford one more opportunity, notice was issued to the petitioner to choose any other place where he wants Registration Certificate. This has also not been availed by the petitioner. Petition dismissed - decided against petitioner.

Summary

Issues:
Challenge to order demanding tax payment and rejection of registration application under the Act.

Analysis:
The petitioner filed a Writ Petition challenging the order demanding tax payment and rejecting the registration application. An interim order was granted by the Court, requesting the petitioner to provide security within a specified period. The petitioner submitted a property document for a property in Namakkal Town. However, during the verification process for issuing the Registration Certificate, it was discovered that the property had been sold to another individual who refused to allow the petitioner to conduct business on the premises. Consequently, the Registration Certificate could not be issued as the property did not belong to the petitioner. Despite being given an opportunity to select an alternate location for the Registration Certificate, the petitioner failed to do so.

The Court found no grounds to interfere with the impugned order. Therefore, the Writ Petition was dismissed, with no costs imposed. The connected miscellaneous petitions were also closed. The judgment highlights the importance of accurate information and ownership verification in registration processes under the Act to prevent unauthorized claims and ensure compliance with legal requirements.