SANT SINGH KANWARJIT SINGH Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) THE petitioner, Messrs Sant Singh Kanwarjit Singh claims to be a registered dealer holding a registration certificate under the Punjab General Sales Tax Act with liability to pay sales tax with effect from 6th April, 1962. This firm was required to file quarterly returns and claims to have been filing these returns for the quarters ending 30th June, 1962, and 30th September, 1962. By means of annexure "a", the Assistant Excise and Taxation Officer has requested the firm to appear before him on 6th February, 1963, and explain as to why his registration certificate should not be cancelled under Section 7 (4) of the Punjab General Sales Tax Act, 1948. In case of non-compliance, the petitioner-firm is to deem its registration certificate to be cancelled with immediate effect. The reasons given for this notice are three, namely:- (1) That the returns filed by the firm for the quarters ending 30th June, 1962, and 30th September, 1962, do not show sales of any taxable goods, but actually the firm had been purchasing huge quantities of vegetable ghee from the market; (2) that the firm had submitted the return for the quarter ending 31st December, 1962, which does not contain list of sales made to registered dealers; and (3) that the petitioner-firm had failed to produce account books for the purpose of assessment for the quarters ending 30th June, 1962, and 30th September, 1962, which resulted in assessment on best judgment basis and that the firm had also failed to produce account books at the time of the inspection of the shop.

(2.) IT is urged on behalf of the petitioner-firm that the grounds contained in the notice are not good grounds for cancelling the registration certificate. Reference has in this connection been made to Section 7 (4) of the General Sales Tax Act which is in the following terms:-7. . . . (4) The Commissioner may from time to time amend or cancel any certificate of registration in accordance with information furnished under Section 16 or otherwise received.

(3.) SECTION 16 reads as under:-16. If any dealer to whom the provisions of Sub-section (3) of Section 10 apply- (a) sells or otherwise disposes of his business or any place of business, or (b) discontinues or transfers his business or changes his place of business or opens a new place of business, or (c) changes the name, constitution or nature of his business, or (d) wants to make any change in the class or classes of goods specified in his certificate of registration for use in the manufacture of any goods for sale, he shall within the prescribed time inform the prescribed authority accordingly; and if any such dealer dies, his legal representative shall in like manner inform the said authority.