9911796707
TMI Blog1969 (5) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner. Admittedly the petitioner was granted an exemption certificate under rule 19 of the Rules framed under the Act in respect of foodgrains. The Assistant Commissioner, Sales Tax, U.P., cancelled the exemption certificate on 23rd of March, 1962. His order reads: "Whereas I am satisfied that M/s. Din Dayal Kesho Lal for the year 1957-58 have contravened the provisions of rules 2013(a), 2013(c) and 20B(i), Chapter V, of the U.P. Sales Tax Rules, 1948, I, P.N. Zutshi, Assistant Commissioner, Sales Tax, Kanpur Range, Kanpur, in exercise of the power vested in me under rule 25(a) of the abovesaid rules, hereby cancel the exemption certificate issued to the abovenamed dealers in pursuance of the exemption order passed by Dr. A.K. Mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposit the balance within a time to be fixed by him. (e) If the Sales Tax Officer finds that the fee deposited by the dealer exceeds the amount payable, he shall order the excess to be refunded." (Underlined by us). A careful study of this provision reveals that in case the Sales Tax Officer is satisfied after making such enquiry as he deems necessary that the information given in the statement by the dealer is correct and that he (dealer) has deposited the correct fee, he shall have no option but to grant an exemption certificate. The use of the words underlined specially the words "shall issue" clearly show that the Sales Tax Officer has no discretion in the matter and is bound to grant an exemption certificate. The Sales Tax Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een granted, it remains in effective force for the period of one year, that is, till the expiry of the assessment year in respect of which it is granted. That effective force cannot be capriciously destroyed or curtailed. A certificate can be cancelled only under rule 25 of the Rules, which reads: "25. Cancellation of certificates.-(a) The exemption certificate may be cancelled by the Assistant Commissioner (Executive) if he is satisfied that the dealer has contravened any of the provisions of this chapter. (b)...................................... The words used in this provision are significant. Firstly, as opposed to "is of the opinion" the words that have been used are "if he is satisfied". The test, therefore, is clearly objectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remedy of filing an appeal against the order passed under section 21 of the Act and for that reason the petition should not have been entertained. In our opinion the submission cannot be accepted. Our reasons are: (i) That admittedly no appeal lies against the cancellation of an exemption certificate under rule 25, with the result that the validity of that order could not have been tested in the appeal filed against the assessment order made under section 21 of the Act. (ii) The writ petition was admitted by this court on 8th November, 1962, and was pending decision till this day. Even if an appeal has been filed before the Assistant Commissioner (Judicial) that cannot provide an alternative adequate remedy to the petitioner. We are, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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