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TMI Blog2020 (1) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is not proper. This procedure envisages that reasons need to be given to cancel the registration. The registered dealer is entitled to know why his explanation was not found satisfactory. The SCN issued to the Petitioner on the basis that the Petitioner had not effected sale of any of the goods specified therein in the year 2016-17. Thus Section 7(4) was invoked against the Petitioner. However, the impugned order refers to Section 7(5) of the Act. Section 7(5) of the Act deals with the contingency where registered dealer himself seeks cancellation of the registration - Petitioner has not made such application. Thus the order is unreasoned and without application of mind. The contention of the Petitioner of breach of principles of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated to me under Section 7(5) of the Central Sales Tax Act, 1956, I hereby order that the Registration Certificate No.27040257267C dated Mar 18, 2019 granted to M/s BHUSHAN STEEL LIMITED for their place of business at : NIFAN SAVROLI, PO T-SAJGAON, TALUKA - HALAPUR, DISTRAIGARH RAIGAD State : MAHARASHTRA is cancelled with effect from Jul 1, 2017 on the grounds of OTHER REASON, PLEASE SPECIFY. (emphasis supplied) 3. We have heard Mr. Thakar, learned counsel for the Petitioner and Ms. Shruti Vyas, learned counsel for the Respondent Nos. 2 to 4. On the face of it, there are no reasons given in the order and the ground is other reason, please specify . 4. Section 7 of the Central Sales Tax Act, 1956 deals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of the appropriate State or for any other sufficient reason. 6. The authority cancelling the certificate has to be satisfied that cause exists for cancellation of registration and the cancellation is to be done after due notice to the dealer. Therefore, if the dealer submits explanation to the show cause notice, the authority, before proceeding to cancel the registration, wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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