Registration deemed granted where the sales tax authority failed to reject the application within the statutory period.

Under section 16 of the M.P. General Sales Tax Act, 1958, the Commissioner had to grant or reject a registration application within ninety days, and failure to do either entitled the applicant to the certificate in accordance with the application. As the application was not rejected within the prescribed period, the Madhya Pradesh HC held that the applicants became entitled to issuance of the registration certificate and granted that relief. The subsequent show-cause notice for cancellation of registration was not decided on merits, and the applicants were left free to raise their objections before the competent authority.

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Issues: Whether the applicant was entitled to a certificate of registration under section 16 of the M.P. General Sales Tax Act, 1958 when the application was neither rejected nor decided within ninety days.

Analysis: Section 16 required the Commissioner to grant registration within ninety days if satisfied, to reject the application within ninety days if not satisfied, and specifically provided that if the certificate was not granted and the application was not rejected within that period, the applicant became entitled to the certificate in accordance with the application. On the admitted facts, the application had not been rejected within the prescribed period. The subsequent show-cause notice for cancellation of registration was not examined on merits, and the petitioners were left free to raise their objections before the authority concerned.

Conclusion: The petitioners were entitled to issuance of the registration certificate, and that relief was granted.

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