9911796707
TMI Blog2009 (11) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Sales Tax Act, 1956, on December 20, 2003 by his CST. No. 796772 in form B effective from December 26, 2003. The petitioner herein got his registration in 2003 both under the Tamil Nadu General Sales Tax Act, 1959 and under the Central Sales Tax Act. The assessment for the year 2003-04 was completed by the first respondent on September 1, 2004. As the petitioner had not complied with rule 24(9) and rule 24(9A) of the Tamil Nadu General Sales Tax Rules, 1959, to have the renewal of the registration, the first respondent herein issued a notice to the petitioner to surrender their registration certificates under both the Acts within seven days of the receipt of notice. Subsequently, the registration certificates issued under both the Tamil Nadu General Sales Tax Act and under the Central Sales Tax Acts were cancelled with effect from April 1, 2004. The grievance of the petitioner is that there is no separate notice issued for cancellation of the registration certificates under section 7 of the CST Act and there is no personal hearing granted to the petitioner. It is further stated that the provision of the CST Act does not provide for cancellation of registrations. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... renew the registration under the Orissa Sales Tax Act from February 1985 to July, 1985 and from September, 1985 to October, 1986 and that as the registration under the CST Act is dependent upon the certificate under the Orissa Sales Tax Act, the purchases made during the aforesaid period under the guise of a registered dealer was a false representation and hence an offence under section 10(c) of the CST Act. Apart from this, there was also a violation of the registration certificate. Hence, proceedings were initiated under section 10A of the CST Act to levy penalty. The Orissa High Court pointed out that as to the question as to whether the petitioner purchased any goods at any point of time in the course of the inter-State trade or commerce prior to the date of registration, evidence showed that the assessee did not purchase any goods prior to the date and hence penalty cannot be levied. As to the issue on the levy of penalty under section 10A of the CST Act, the court pointed out that the certificate issued to the assessee under section 7(2) of the CST Act showed the clear mentioning that the certificate was valid until it was cancelled. There was no factual cancellation or a fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Sub-section (2) of section 7 makes registration optional under the CST Act, to those dealers registered under the local Act notwithstanding the fact he is not liable to pay tax under the CST Act. Section 7(4) deals with amendment and cancellation of registration. For easy understanding, section 7(4)(b) of the Act is extracted hereunder: 7. (4)(b) be cancelled by the authority granting it where he is satisfied, after due notice to the dealer to whom it has been granted, that he has ceased to carry on business or has ceased to exist or has failed without sufficient cause, to comply with an order under subsection (3A) or with the provisions of sub-section (3C) or sub-section (3E) or has failed to pay any tax or penalty payable under this Act, or in the case of a dealer registered under sub-section (2) has ceased to be liable to pay tax under the sales tax law of the appropriate State or for any other sufficient reason. The learned counsel for the petitioner placed heavy reliance on the provisions of section 7(4) of the CST Act that the grounds of cancellation cannot be anything other than what is specified under the section. As for this contention is concerned, admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The registration under the CST Act is under section 7(1) and not by reason of section 7(2) of the CST Act. As already noted, an assessee who is a registered dealer under the CST Act, has to necessarily register himself under section 20(2) of the TNGST Act. Under sub-section (3) of section 21 of the TNGST Act, certificate issued under sub-section (2) of section 21 of the TNGST Act shall be valid for a period of one year and is renewable within such period and on payment of fees certified in sub-section (1). The sub-section further states that the certificate shall be deemed to have been cancelled unless it had been renewed. Proviso to sub-section (3) states that even if a registered dealer fails to renew the certificate of registration within the period prescribed, namely, as prescribed under rule 24, sub-rule (9) of the TNGST Rules, he shall be permitted to renew the certificate, as per rule 29A of the TNGST Rules, namely, up to 30th of April of the year for which renewal is requested on payment of penalty equal to the fee payable. Going by the said section, in the absence of any renewal application made within the time prescribed, or for that matter, even beyond the period as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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