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TMI Blog2019 (6) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... lly become inactive - HELD THAT:- When the legislature wants to provide for automatic cancellation of the registration granted under an enactment, it is expressly provided in such enactment. Since no such provision has been made in the CST Act, no such intention can be read into it and consequently, upon the coming into force of the Taxation Laws (Amendment) Act, 2017 whereby the definition of goods in the CST Act came to be amended, CST registrations of dealers other than those dealing in the specified commodities would not become inactive automatically. Benefit of reduced rate of tax - Whether a dealer who is registered under the Goods and Services Tax Act cannot also be registered under the CST Act, when the CST Act requires a person who deals in or claims usage of the goods specified thereunder to be registered under that Act for getting the benefit of reduced rate of tax under section 8 thereof? - HELD THAT:- If a dealer is dealing in goods falling within the ambit of the GST Act as well as the CST Act, it is always permissible for him to hold separate registrations under both the Acts in respect of such goods. Therefore, a dealer who is registered under the GST Act can als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27.2.2019 of the jurisdictional authority informing the concerned petitioner that the application for amendment of registration certificate had been erroneously approved because the concerned officer was seeking guidance of the superior authority on the issue and till such time, the approval for amendment of registration certificate under the CST Act has been put on hold. Being aggrieved, the petitioners have filed the present petitions. 4. Mr. Uchit Sheth, learned advocate for the petitioners submitted that the impugned letter issued by the second respondent State Tax Officer is without authority of law, arbitrary and illegal. It was submitted that it is well settled that an authority does not have the power to review its own order unless such power is expressly conferred. Referring to the provisions of section 7 of the CST Act, it was submitted that the officer who approved the application for amendment of registration certificate under the CST Act had no jurisdiction to review his decision and put the approval on hold. It was pointed out that the jurisdictional officer has kept the approval in abeyance for seeking guidance of the superior authority, to submit tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a request for amendment of the CST registration certificate so as to include High Speed Diesel Oil as commodity on 13.12.2018; however, at the time when such application was made, the petitioners could not be said to be holding a valid registration under the CST Act and, therefore, granting such amendment would be contrary to the active registration of the petitioners under the GST Act. 5.1 It was submitted that in view of the fact that upon the Taxation Laws (Amendment) Act, 2017 coming into force, section 2(d) of the CST came to be amended and the definition of goods was restricted to the commodities specified thereunder, the registration certificates of dealers who were dealing or claiming usage of commodities other than those specified under the amended definition would no longer be said to be active, and, therefore, such registration certificate cannot be amended. 5.2 Insofar as keeping the order by virtue of which the amendment had been permitted and High Speed Diesel had been included as commodity in the CST registration certificate of the petitioners in abeyance is concerned, it is submitted that the whole objective behind it was to ensur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate and that as per section 7(4) of the CST Act, the registration certificate granted has to be amended or cancelled and that such provisions had not been invoked. 7. In the aforesaid backdrop, before adverting to the merits of the case, reference may be made to the record as placed before this court. A perusal of the registration certificate of the petitioners reveals that in the case of the petitioner in Special Civil Application No.6348 of 2019, a registration certificate dated 19.9.1998 under the Central Sales Tax (Registration and Turnover) Rules, 1957 has been issued in favour of the petitioner which is valid with effect from 10.7.1998 till it is cancelled. Similarly, the registration certificate of the petitioner in Special Civil Application No.6353 of 2019 dated 22.9.1992 reveals that the same is valid from 2.9.1992 till it is cancelled. 8. The petitioners by separate letters dated 17.12.2018 addressed to the Central Sales Tax Officer requested him to incorporate High Speed Diesel in the Central Sales Tax Registration Certificate for the purpose of mining. It is further stated therein that they have made on-line applications dated 13.12.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... general or special order, specify, and every such application shall contain such particulars as may be prescribed. ( 2) Any dealer liable to pay tax under the sales tax law of the appropriate State, or where there is no such law in force in the appropriate State or any part thereof, any dealer having a place of business in that State or part, as the case may be, may, notwithstanding that he is not liable to pay tax under this Act, apply for registration under this Act to the authority referred to in sub section (1), and every such application shall contain such particulars as may be prescribed. Explanation.-For the purposes of this sub-section, a dealer shall be deemed to be liable to pay tax under the sales tax law at the appropriate State notwithstanding that under such law a sale or purchase made by him is exempt from tax or a refund or rebate of tax is admissible in respect thereof, ( 3) xxxx ( 4) A certificate of registration granted under this action may - ( a) either on the application of the dealer to whom it has been granted, or, where no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 7 of the CST Act should be competent enough to exercise the powers vested in it on its own without having to seek guidance from anyone, otherwise it reflects on the lack of competence on the part of such authority in discharging the powers vested in it by the Central Government. Therefore, the submission advanced on behalf of the respondents that the whole objective behind keeping the order of approval in abeyance is to ensure that nothing contrary to the statute is permitted and if need arises, the higher authority may look into the whole issue and resolve the same in accordance with Iaw, flies in the face of the provisions of section 7 of the CST Act, and reflects lack of competence on the part of the concerned officer exercising powers vested in him under section 7 of the CST Act. In the opinion of this court, every officer who is notified as an authority under any enactment, while exercising powers specifically vested in him under such enactment, is required to act independently in the discharge of his duties and cannot refuse to exercise the powers vested in him on the ground of seeking guidance from a higher authority. 10.3 Another aspect of the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.1 It may be noted that pursuant to the coming into force of the Goods and Services Tax Acts, the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as the GVAT ACT ) came to be amended and by virtue of section 27A of that Act, it was provided that all registered dealers not dealing with goods defined in section 2(13) shall be deemed to be deregistered from the date of coming into force of the Gujarat Value Added Tax (Amendment) Act, 2017 and their registration certificates shall stand cancelled. Thus, the GVAT Act provides for automatic deregistration of dealers not dealing with goods denied in section 2(13) thereof, whereas no such provision providing for automatic deregistration of dealers under the CST Act has been made in the Taxation Laws (Amendment) Act, 2017 whereby amendments were made in the Central Sales Tax Act. It is therefore clear that when the legislature wants to provide for automatic cancellation of the registration granted under an enactment, it is expressly provided in such enactment. Since no such provision has been made in the CST Act, no such intention can be read into it and consequently, upon the coming into force of the Taxation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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