9911796707
TMI Blog1963 (4) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with that section. On the 27th September, 1962, the Assessing Authority issued two notices to the petitioner which are appended to the petition as annexures B-1 and B-2 to show cause why certificates granted under the Punjab and the Central Acts be not cancelled. The reasons mentioned for cancelling the certificates in the notices are identical, namely, that the petitioner is not a bona fide dealer and is abusing the registration certificates for evasion of tax to the detriment of the State Revenue. In response to these notices, the petitioner wrote to the Assessing Authority on the 29th September, 1962, requesting the Assessing Authority to furnish details of the material available in his possession justifying the proposed cancellation. This letter was received by the Assessing Authority on the 1st October, 1962, and without replying to the petitioner's letter, the Assessing Authority cancelled the certificates on that very date. In the return, the position taken up by the Assessing Authority is that the letter was brought to the notice of the Assessing Authority three days later, i.e., on the 3rd October, 1962. It is against this order of cancellation that the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the first contention is concerned, the argument of the learned counsel for the State is sound and must prevail. Section 15 of the Act deals with the delegation of powers and is in these terms:- "15. Subject to such restrictions and conditions as may be prescribed the Commissioner may by order in writing delegate any of his powers under this Act, except those under sub-section (1) of section 21 to any person appointed under section 3 to assist him." In pursuance of this provision, two notifications have been placed before me. They are of the same date, namely, the 30th March, 1949, and are numbered 1344-E T and 1346-E T and are reproduced hereunder:- "No. 1344-E T-In exercise of the powers conferred by subsection (2) of section 3 of the East Punjab General Sales Tax Act, 1948, the Governor of East Punjab is pleased to order that the persons appointed under sub-section (1) of section 3 of the aforesaid Act shall exercise the powers noted against each for carrying out the purposes of the Act: Designation of Officer Powers Jurisdiction 1. Deputy Excise taxation Commissioner, Jullundur Circle To act as appellate authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved must be information pertaining to section 16. It is also not disputed that the registration certificate could be cancelled under section 7(6). So far as the present cancellation is concerned, it is common ground that neither the grounds mentioned in section 7(6) nor section 16 are available. The cancellation has been made on the ground, "that some transactions entered into by the dealer are bogus transactions and that the dealer is making bogus and false sales, to different registered dealers thereby evading tax at all stages of these transactions and thus depriving the State exchequer of its legitimate revenue and is not a bona fide dealer." Unfortunately, there is no provision in the Act giving power of cancellation on the grounds on which the certificate has been cancelled. This ground is sought to be brought in under the provision of section 7(4). Section 7(4) reads thus: "7(4). The Commissioner may from time to time amend or cancel any certificate of registration in accordance with information furnished under section 16 or otherwise received." Learned counsel for the State would like me to read this section like this "The Commissioner may from time to time * * * cancel a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of statutes. That being so, the contention of the learned counsel for the State must be repelled and it must be held that the cancellation which has taken place in this case being not in accordance with any provision in the Act is wholly illegal. With regard to the last contention, it has been fairly conceded by the learned counsel for the State that no adequate opportunity has been granted to the petitioner and therefore on the facts and circumstances of this case the order of cancellation cannot be justified. But he contends that if it is held that the Commissioner had the power to cancel the registration certificate, the department is prepared to further examine the matter after giving a proper opportunity to the petitioner to show cause against the proposed cancellation of the registration certificate. Therefore the petitioner is also entitled to the writ on the basis of the third contention, even if it be held that my decision on the second contention is erroneous. The position, however, is different in so far as the Central Act is concerned. The registration certificate granted under that Act can be cancelled for any other sufficient reason besides the reasons mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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