M K TRADING COMPANY Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE Sales Tax Tribunal, Punjab, has referred the following question of law for our opinion under Section 22 (1) of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act): Whether, on the facts and circumstances of the case, an order cancelling the registration certificate under Section 7 (4) of the Act Is sustainable In law?

(2.) THE petitioner was issued a registration certificate on 21st November, 1968. A notice was issued to him on 12th March, 1970, under Section 7 (4) of the Act to show cause why the registration certificate should not be cancelled. Two grounds were mentioned in the notice: (1) that the petitioner was directed by the Assessing Authority to file monthly returns. The return for the month of January, 1970, was to be furnished by 15th February, 1970. The return was, however, not filed by the due date; and (2) that the petitioner made bogus sales in favour of three bogus dealers.

(3.) THE Assistant Excise and Taxation Officer observed that the dealer was indulging in bogus sales, and that the return had not been filed in time. On these two grounds, the registration certificate was cancelled. An appeal was taken to the Sales Tax Tribunal, Punjab, and the Tribunal rejected the appeal and found in favour of the department that the grounds on which the Assistant Excise and Taxation Officer had cancelled the registration certificate were established and justified the cancellation of the registration certificate. The petitioner being dissatisfied with the decision of the Tribunal moved an * application under Section 22 (1) of the Act, and the Tribunal has referred the question mentioned above for our opinion.