Statutory limits on cancellation of sales tax registration controlled action under section 7(4), not extra-statutory allegations.

Section 7(4) of the Punjab General Sales Tax Act, 1948 was construed as permitting cancellation of a registration certificate only on information within the statutory scheme of section 16. The phrase "otherwise received" was treated as qualifying "information" and not as enlarging the power to act on material outside that scheme. On that reading, the Commissioner could rely on information the dealer was bound to furnish, or the same information from another source if not furnished, but not on a different ground. The text states that alleged fraudulent sales could not override the plain language of the provision, and the cancellation order was without authority under section 7(4).

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Issues: Whether, under section 7(4) of the Punjab General Sales Tax Act, 1948, the Commissioner could cancel a registration certificate on a ground outside section 7(6) or on information other than that contemplated by section 16.

Analysis: The expression "otherwise received" in section 7(4) was held to qualify the word "information" and not to enlarge the power to cover information outside the statutory scheme of section 16. The provision was read as referring to information which the dealer was bound to furnish under section 16, or the same information received from another source if the dealer failed to supply it. The language of the subsection was found clear and incapable of being expanded to justify cancellation on a different ground. The challenge based on alleged fraudulent sales could not override the plain wording of the statute. The concession regarding lack of adequate opportunity was not open for reconsideration in the appeal.

Conclusion: The cancellation order was without authority under section 7(4) and was rightly quashed. The appeal was decided against the appellant and in favour of the assessee.

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