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TMI Blog2013 (4) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... t yet attained finality and cannot be taken as adverse for cancellation of registration certificate. Three loose papers have been found at the time of survey made on 15th July, 2011 by the Special Investigation Branch which indicates that the petitioner is indulging in suppression of turnover - Held that:- As the proceedings before the Special Investigation Branch, Unit-II, Varanasi had not been concluded and no finding have been returned by the Special Investigation Branch to the effect that three loose papers denote suppressed turnover when the impugned order was passed. Thus, both the grounds taken for cancellation of registration certificate are not sufficient for cancelling the same. - Writ tax no. - 1336 of 2011 - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of accounts were not found in the business premises of the petitioner and three loose papers were seized. The proceedings before the Special Investigation Branch was initiated. In the mean time relying upon the circular/directive issued by the Headquarters proceedings for cancellation of the registration certificate has been initiated by the respondent no.2 by issuance of a notice dated 8th August, 2011 calling upon the petitioner to show cause as to why the registration be not cancelled as it was indulging in evasion of tax and is not cooperating in the proceedings before the Special Investigation Branch. The petitioner appeared through its representative and submitted that the proceedings before Special Investigation Branch is sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... until the proceedings before the SIB are concluded, the order of suspension of registration and the proceedings for cancellation be stayed. The Assistant Commissioner, Commercial Tax (Registration Cell), Ghazipur has found that both the proceedings are separate, but that taking the grounds of non-appearance and non-cooperation before the SIB, he has cancelled the registration for the reason, that during the survey the regular account books were not found and three doubtful used parchas were found. We prima facie find that though the petitioner has a right to appeal under Section 55 of the Act, the action taken by the respondents in cancelling the registration, by which the petitioner has been stopped from doing business, is not suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had complied with. He submitted that under sub-section (11) of Section 17 of the Act, the registering authority is empowered to cancel registration certificate after giving reasonable opportunity of being heard to the dealer on any of the grounds mentioned in clauses (a), (b) and (c) of the said sub-section and none of the grounds mentioned in clauses (a), (b) and (c) are attracted in the present case, therefore, the impugned order is liable to be set aside. He further submitted that no adverse inference can be drawn from the assessment order made for the Assessment Year 2009-10 as it has not yet attained finality and further the Special Investigation Branch had not given any finding whether the three loose papers seized at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 , it is not in dispute that the appeal is pending before the Tribunal which is empowered to go into both the questions of fact and law. Thus, the order for the Assessment Year 2009-10 has not yet attained finality and cannot be taken as adverse for cancellation of registration certificate. So far as the second ground is concerned, we are of the considered opinion that the proceedings before the Special Investigation Branch, Unit-II, Varanasi had not been concluded and no finding have been returned by the Special Investigation Branch to the effect that three loose papers denote suppressed turnover when the impugned order was passed. Thus, both the grounds taken for cancellation of registration certificate are not sufficient for canc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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