9911796707
TMI Blog1997 (7) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... order of cancellation was challenged before the Commissioner of Sales Tax, Orissa. By order dated March 11, 1997 the Additional Commissioner of Sales Tax who heard the revision petition in each case, upheld the order directing cancellation of the certificate of registration. Grounds which weighed with the Sales Tax Officer to direct cancellation was the petitioner which was granted the certificate of registration as an S.S.I unit for manufacturing certain articles, was found not to be carrying on any activity whatsoever. No manufacturing activity by the so-called unit was even carried out and no machinery or raw material was noticed in the premises of the petitioners. Sales Tax Officer referred to observations during certain inspections ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the cancellation was proper. 3.. In support of the application Mr. L. Pangari, learned counsel submitted that section 9(6)(c) of the Act which permits cancellation of certificate of registration is not applicable to the facts of the case. It was also submitted that before utilising the reports of the two Sales Tax Officers no opportunity was granted to the petitioner in each case to have its say in the matter. The learned counsel for revenue, however, supported the order stating that requisite opportunities were granted and in the circumstances action under section 9(6)(c) was proper. 4.. Section 9(6)(c) authorises cancellation of registration with effect from the prescribed date, if any sufficient reason, which is not covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m a date to be specified in the order. Reasons are the links between the materials on which certain conclusions are based and the actual conclusions. The word "sufficient" means "adequate", "enough", "as much as may be necessary to answer the purpose intended". It embraces no more that which provides a plentitude which, when done, suffices to accomplish the purpose intended in the light of existing circumstance, and when viewed from reasonable standard of practical and cautious men. The expression "sufficient reason" implies presence of legal and adequate reason. Obviously the Sales Tax Officer has power to direct cancellation where really no manufacturing activity in carried on, and/or the registration is obtained with oblique motive to ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials to be relied upon against a person should be disclosed to him. 6.. Above being the position, order of the Additional Commissioner (annexure 14 in each case) is vitiated, and is set aside. We remit the matter back to him for fresh disposal. We make it clear that we have not expressed any opinion on merits. Direction for reconsideration is in view of violation of principles of natural justice. The Additional Commissioner shall bring to notice of the petitioner in each case the materials proposed to be utilised against it. The reports need not be furnished in entirety to the concerned petitioner, and only the relevant materials which were intended to be utilised shall be brought to its notice. To avoid unnecessary delay petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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