COMMERCIAL TAX OFFICER Vs. DAWOOD AND CO

JUDGEMENT

(1.) On an application made to the prescribed authority, the respondent in this appeal was registered as a dealer under the Bengal Finance (Sales Tax) Act, 1941, on 24th May, 1952. On 25th June, 1961, the respondent received a notice from the Commercial Tax Officer, Central Section, West Bengal, which reads : Government of West Bengal Office of the Assistant Commissioner, Commercial Taxes, Central Section, West Bengal, 10, Madan Street, Calcutta-13. Memorandum No. CL/2350A/4679 dated Cal. the 25-5-1961 Sri M. Popli, Proprietor. To M/s. Dawood & Co., 12, Lower Chitpur Road, Calcutta. You are hereby informed that as desired by the Commissioner, Commercial Taxes, your file under the Bengal Finance (Sales Tax) Act, 1941 (R.C. No. CL/2350A) has been transferred to this section and I have assumed jurisdiction over the said file. I have information that you are not carrying on any business. You are, therefore, being given an opportunity to adduce evidence of your business on 27-5-61 at 10.30 a.m. by producing before me or causing to be produced before me on that date and time, the following records:

(2.) To this notice the respondent sent a reply praying for time and stating that the records called for had been mislaid and that the accountant who was in-charge of the said records being ill, it was "absolutely impossible" for the respondent to produce the records on 27th May, 1961, as directed. The Commercial Tax Officer rejected the prayer for time on several grounds. On the material before him, he was not inclined to believe that the accountant was so ill as sought to be made out. He further found on perusal of the dealer's case records that on all previous occasions Sri Madanlal Popli, the proprietor of the business, had himself explained all his books of account to the Commercial Tax Officers concerned without the assistance of the accountant. The Commercial Tax Officer also found it hard to believe that the records had been mislaid. The Commercial Tax Officer therefore held that there was no valid cause for non-production of the records by the respondent. Having rejected the petition for time the Commercial Tax Officer proceeded to enquire whether the dealer was still carrying on the business in respect of which he had been granted the registration certificate. On perusal of the dealer's file the Commercial Tax Officer found as follows :

(3.) It appears that after the dealer's file was transferred to the Commercial Tax Officer who had issued the notice dated 25th May, 1961, the said officer, having received an information that the dealer had discontinued the business, visited his registered place of business earlier on the same day, i.e., 25th May, 1961, along with two Inspectors of the Central Section. On searching that place the Commercial Tax Officer could not find any books of account nor any trace of business activity. As stated already, on 27th. May, 1961, also the dealer did not produce his records. The dealer's continued reluctance to produce his records led the Commercial Tax Officer to believe that he was trying to prevent any proof as regards his alleged business. On the basis of the dealer's past records and present conduct, the Commercial Tax Officer came to the conclusion that the dealer had discontinued the business in respect, of which he had been granted certificate of registration. On 27th May, 1961, the Commercial Tax Officer passed an order cancelling the dealer's registration certificate under Section 7(6)(a) of the Act and wrote to the dealer as follows : You are hereby informed that your registration certificate No. CL/2350A has been cancelled under Section 7(6)(a) of the Bengal Finance (Sales Tax) Act, 1941. You are, therefore, directed to return your said registration certificate and unused declaration forms, if any, to this office within 3 days from the date of receipt of this letter. Commercial Tax Officer, Central Section, West Bengal.