Fair hearing in dealer registration cancellation requests is required before rejection under the sales tax framework.

Section 9(6)(c) of the Orissa Sales Tax Act and rule 16-A were read as permitting cancellation of dealer registration where sufficient cause exists, and the dealer was not excluded from bringing such a request before the authority. The scheme required the authority to form an initial view and, consistent with fair procedure, conduct some enquiry before rejecting the request. Natural justice applied because the statute did not expressly exclude it, so the dealer had to be given an opportunity to support the application before any refusal or reference onward. Rejection of the applications without hearing was therefore improper and liable to be set aside for fresh consideration.

---

---

Issues: Whether applications for cancellation of dealer registration under section 9(6)(c) of the Orissa Sales Tax Act, 1947 could be rejected without enquiry or hearing, and whether the authority was bound to consider the request on its merits before making a reference under rule 16-A of the Orissa Sales Tax Rules.

Analysis: Section 9(6) permits cancellation of registration where sufficient reason exists, and rule 16-A contemplates the Assistant Sales Tax Officer or Sales Tax Officer forming an initial satisfaction and then referring the matter to the Commissioner. Although the rule does not expressly provide for an application at the initial stage, it does not exclude a dealer from bringing the matter to the notice of the authority. The scheme of the provision, read with the requirement of fair procedure, requires some enquiry before the request is rejected. Since cancellation may follow where registration has become unnecessary or was obtained under a mistaken view of law, the applicant should be given an opportunity to support the request before the authority decides whether to refer the matter onward.

Conclusion: The rejection of the applications without hearing the petitioners was not proper, and the orders were liable to be quashed with a direction for fresh consideration after giving an opportunity of hearing.

Ratio Decidendi: Where a statutory scheme permits cancellation of registration on sufficient cause and does not exclude an initial request by the dealer, the authority must afford a fair opportunity of hearing before rejecting the request, as natural justice applies unless expressly excluded.

---