Cancellation of registration cannot be based on unpaid admitted tax before assessment under the West Bengal Sales Tax framework.

A notice for cancellation of registration under section 26(11) of the West Bengal Sales Tax Act, 1994 could not be issued merely because admitted tax shown in returns had not been paid before assessment was completed. The statutory scheme distinguished between return filing and final ascertainment of tax payable through assessment; until the assessing authority determined the liability, the tax was not finally due and payable for this purpose. Accordingly, the cancellation power was not attracted at the return stage, and the notice was illegal and unsustainable.

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Issues: Whether a notice for cancellation of registration under section 26(11) of the West Bengal Sales Tax Act, 1994 could be issued for non-payment of admitted tax shown in returns before assessment was completed.

Analysis: The relevant scheme of the Act distinguished between the charging of tax, the filing of returns, and the ascertainment of tax payable through assessment. On that scheme, a dealer's liability to be assessed to tax existed upon filing of returns, but tax could not be treated as finally due and payable until the assessing authority determined the liability. The power to cancel registration for failure to pay tax was therefore not attracted merely because tax had not been deposited at the return stage. The pending challenge to the amendment affecting tax holiday did not alter the limited question whether section 26(11) could be invoked before assessment.

Conclusion: Section 26(11) could not be invoked against the dealer before assessment, and the notice seeking cancellation of registration was illegal and unsustainable.

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