SURI ENTERPRISES Vs. ASSESSING AUTHORITY

JUDGEMENT

(1.) THE grievance projected in the writ petition is that the assessing authority declined to register the petitioners firm vide order impugned in the writ petition, According to Mr. Z. A. Shah learned counsel for the petitioner, the assessing authority was obliged to register the petitioners firm and grant certificate of registration in the prescribed manner on payment of requisite fee as per the provisions of Sec. 1 (3) of the J&K General Sales Tax Act. It is submitted that the petitioner firm had submitted the application compleie in ali respects and had deposited the requisite fee but the assessing authority relying upon the report of Mr. Wall, an inspector of the department, rejected the prayer for registration without even supplying a copy of the report of Mr. Wali to the petitioner firm to enable it to controvert the report learned counsel, therefore, submits that the refuse! to register the petitioners firm under Sec. 6(3) of the General Sales Tax Act, is based on material which was extraneous and as such the impugned order cannot be sustained.

(2.) MR . Ishtiaq Hussain appearing for the respondents submits that since the registrating authority was required to satisfy itself .about the genuinness of the firm in view of the provisions of Sec. 6 (3) of the Act read with rule 7 pf the ,Rules framed, under the Act -and if the assessing authority was not satisfied, it had the jurisdiction to refuse to register the firm. It is, however, not denied that the report of the inspector who was directed to conduct an enquiry was not supplied to the petitioner firm and it is also not disputed that the inspector while conducting the enquiry had not associated the petitioner or given them any opportunity of placing their case before him.

(3.) SECTION 6 (3) of the Act provides that if the authority competent to register an application as required by sub -see, 2 of sec. o of the Act is satisfied that the application for registration is in order, he shall register the applicant and grant a certificate of registration in the prescribed manner on payment of the prescribed fee. This section, however, has to be read alongwith the Rules and the relevant rules framed under the Act is Rule 7 of the J&K Sales Tax Rules 1962. published vide SRO 16 of 1963, which provides in sub clause (c) that the Assessing Authority shall soon after the receipt of application cause an enquiry to be made by the Inspector regarding ths contents of the application and the inspector shall submit his report within a period of 7 days. .After the report is received then vide sub -clause (i) of Rule 7 the Assessing Authority, on being satisfied and on making such further enquiry as he may consider necessary find whether or not declare is genuine and his application is in order and completed respects, shall grant the certificate of registration In form ST -6 to the dealer ordinarily within a period of 20 days from the date of -making of application; The Assessing Authority, if is not satisfied, may refuse to grant the certificate of registration by passing an order in writing but such an order can be passed only after a reasonable opportunity or hearing has been granted to the petitioner.