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TMI Blog1964 (12) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... n certificate should not be cancelled under section 7(4) of the Punjab General Sales Tax Act, 1948. In case of non-compliance, the petitioner-firm is to deem its registration certificate to be cancelled with immediate effect. The reasons given for this notice are three, namely: (1) That the returns filed by the firm for the quarters ending 30th June, 1962, and 30th September, 1962, do not show sales of any taxable goods, but actually the firm had been purchasing huge quantities of vegetable ghee from the market; (2) that the firm had submitted the return for the quarter ending 31st December, 1962, which does not contain list of sales made to registered dealers; and (3) that the petitioner-firm had failed to produce account books for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion certificate is sought to be cancelled do not fall within the ambit of this section. On behalf of the State, Shri M.R. Sharma has, to begin with, read annexure 'A' and has submitted that ground No. 1 necessarily implies that the petitioner-firm has discontinued its business. I regret my inability to read ground No. 1 in annexure 'A' to mean what the counsel asserts. According to this ground, all that it means is that though the dealer has been purchasing huge quantities of vegetable ghee from the market, no sales are shown by him in the returns filed which obviously means that the returns are false. This does not seem to be one of the grounds justifying applicability of section 16. And then, this is not the ground taken in the return fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in hand, the infirmity is patent on the face of the record and the notice is wholly misconceived and unauthorised. It is unfortunate that the departments should not apply their mind to the law before issuing such notices which must necessarily entail unnecessary expenditure to the State by litigation which must go against the departments. Merely because the petitioner is doing something which is highly objectionable and is committing fraud on the revenue does not mean that the department should also act in an illegal manner. It must be remembered that ours is a legal State in which not officer and no department has any powers outside those conferred by law. I have no doubt that the department has sufficient powers under the law to avoid fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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