Retrospective cancellation of recognition certificate exceeded rule-making authority and was invalid from the earlier date.

Cancellation of a recognition certificate under rule 25-B of the Mysore Sales Tax Rules could operate only from the date of cancellation, because the rule stated that the certificate remained valid from receipt of the application until cancellation. An order purporting to make the cancellation effective from an earlier date was beyond the authority conferred by the rule and, to that extent, was invalid. The retrospective portion of the cancellation order was therefore quashed, while the cancellation itself remained effective prospectively from the date it was made.

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Issues: Whether cancellation of an exemption or recognition certificate granted under rule 25-B of the Mysore Sales Tax Rules could operate retrospectively from a date earlier than the date of cancellation.

Analysis: Sub-rule (2) of rule 25-B provided that the certificate of recognition would be valid from the date of receipt of the application until the date of cancellation. On that language, the cancellation could take effect only from the date on which it was made and not with retrospective effect. An order giving the cancellation effect from an earlier date exceeded the authority conferred by the rule.

Conclusion: The retrospective portion of the cancellation order was invalid and was quashed, while the cancellation remained effective from the date of cancellation.

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