SAHA STORES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE facts of this case are shortly as follows :-

(2.) ON or about 13th September, 1948, the petitioner was registered as a dealer within the meaning of the Bengal Finance (Sales Tax) Act, 1941, hereinafter referred to as the "Act". Since then, sometime in March, 1955, the authorities refused to issue further declaration forms to the petitioner and the petitioner took out a Rule from this Court being C.A. No. 2961 of 1955. ON the 17th July, 1956, the petitioner intimated to the Court that he was not going on with the application and the rule was discharged. Between the 2nd and 14th August, 1956, the petitioner was called upon to deposit as security a sum of Rs. 2,000 in exercise of powers conferred upon the Commissioner under Section 7 (4a) (ii) of the said Act as reasonable security for the proper custody and use of the declaration forms. Thereupon 20 declaration forms were issued. In December, 1956, further security of Rs. 8,000 was demanded which the petitioner furnished between the 7th March, 1957, and 31st July, 1957. Thereupon, further forms were issued. It is said that sometime in August, 1957, an Inspector, Central Section, made enquiries and found that the petitioner was not carrying on business at his registered address. ON the 6th, 7th and 15th February, 1958, further inspection was made. ON the 6th and 15th his registered place of business at 31, Russa Road, Southern Market, Calcutta, was found under lock and key. ON the 7th although the shop room was open, no stock was found there. The dealer himself reported to the Inspector that he had practically stopped his business. ON the 12th of April, 1958, the Commercial Tax Officer, Central Section, issued notice under Section 14 of the said Act upon the dealer directing the production of books of account for the year 1364 B.S. The dealer did not comply but prayed for time to write up his books. ON the 12th of April, 1958, an Inspector was deputed to make local enquiry. The Inspector reported that the dealer was not carrying on any business at the registered address and no books were found. ON the 16th of April, 1958, the Commercial Tax Officer, Central Section, issued a show cause notice on the petitioner returnable on 28th of April, 1958, as to why the petitioner's registration certificate should not be cancelled as it transpired from local enquiry that he was not carrying on any business from the registered address. ON the same day the petitioner showed cause. He stated that he had temporarily stopped the retail business but. he was carrying on his main business. Meanwhile, the petitioner in spite of repeated notices was not producing his account books for the year 1364 B. S. He produced it only on the 2nd June, 1958. It was found upon a scrutiny of the books that he had really stopped business and had made some suspicious entries. There were certain advances shown in the books as having been made by Messrs K. B. R. & Co. The authorities contacted Messrs K. B. R. & Co., but they denied having made any advance. At the hearing of this application Mr. Chatterjee appearing on behalf of the petitioner stated that if the challans which were in the custody of the respondents were produced he could show the payments. It seemed to me rather strange that challans should show the payments and I distinctly asked him as to whether his client could produce any document at all to show payment of the money. He confessed that apart from the challans and the entries in the books, nothing could be shown. I postponed the matter for sometime to have the challans produced in Court. None of them contained any endorsement as to payment of money. ON the 2nd July, 1958, the Commercial Tax Officer, Central Section, passed an order cancelling the registration, in exercise of the powers conferred by Section 7 (6) (a) of the Act. This application was taken out on the 17th September, 1958, complaining against the order of cancellation. The relevant provision of Section 7 runs as follows :- 7(1) No dealer shall, while being liable to pay tax under Section 4 of this Act carry on business as a dealer unless he has been registered and possesses a registration certificate. (6) When -- (a) any business in respect of which a certificate has been granted to a dealer on an application made has been discontinued (b) ... the Commissioner shall cancel the registration.