Special registration discretion must be exercised on relevant considerations; arbitrary refusal under Rule 6A was unlawful.

Rule 6A of the Orissa Sales Tax Rules, 1947 permits special registration where a dealer has no fixed place of business in the State or carries on business in circles other than the circle of its principal place of business. The Commissioner's discretion is wide but must be exercised on relevant considerations and sound judicial principle; it cannot be refused on arbitrary or extraneous grounds such as administrative inconvenience or a mistaken view that the rule is confined to small-scale or seasonal dealers. The rejection of the application was therefore unlawful, and the dealer was entitled to registration under special circumstances.

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Issues: Whether the rejection of the application for registration under special circumstances under rule 6A of the Orissa Sales Tax Rules, 1947 was legally sustainable.

Analysis: Rule 6A is an exception to the general scheme requiring registration in each circle where business is carried on, and it enables the Commissioner to direct registration in a specified circle where the dealer has no fixed place of business in the State or carries on business in circles other than those where its place of business is located. The discretion under the rule is wide but not arbitrary and must be exercised on sound judicial principle. The reasons recorded for refusal were untenable because the rule is not confined to small-scale or seasonal dealers, administrative inconvenience cannot defeat the purpose of the rule, and the possibility of monitoring, including through conditions and statutory safeguards, does not justify rejection. The reliance on the earlier decision was also misplaced because that case turned on its own facts.

Conclusion: The rejection of the application under rule 6A was unlawful and the dealer was entitled to registration under special circumstances.

Ratio Decidendi: Discretion conferred by a special-registration provision must be exercised fairly, on relevant considerations, and not on arbitrary or extraneous grounds.

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