TaxTMI 
TaxTMI 
1959 (3) TMI 49
X X X X Extracts X X X X
X X X X Extracts X X X X
.... with the application and the rule was discharged. Between the 2nd and 14th August, 1956, the petitioner was called upon to deposit as security a sum of Rs. 2,000 in exercise of powers conferred upon the Commissioner under section 7 (4a) (ii) of the said Act as reasonable security for the proper custody and use of the declaration forms. Thereupon 20 declaration forms were issued. In December, 1956, further security of Rs. 8,000 was demanded which the petitioner furnished between the 7th March, 1957, and 31st July, 1957. Thereupon, further forms were issued. It is said that sometime in August, 1957, an Inspector, Central Section, made enquiries and found that the petitioner was not carrying on business at his registered address. On the 6th, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ooks that he had really stopped business and had made some suspicious entries. There were certain advances shown in the books as having been made by Messrs K. B. R. & Co. The authorities contacted Messrs K. B. R. & Co., but they denied having made any advance. At the hearing of this application Mr. Chatterjee appearing on behalf of the petitioner stated that if the challans which were in the custody of the respondents were produced he could show the payments. It seemed to me rather strange that challans should show the payments and I distinctly asked him as to whether his client could produce any document at all to show payment of the money. He confessed that apart from the challans and the entries in the books, nothing could be shown. I po....
X X X X Extracts X X X X
X X X X Extracts X X X X
....carry on any business unless he has been registered and possesses a registration certificate. Every dealer whose gross turnover exceeds the taxable quantum is liable to pay taxes. Therefore, a dealer whose gross turnover exceeds the taxable quantum must get himself registered in order to do business. Sub-section (2) of section 7 lays down that every dealer required by sub-section (1) to be registered under the Act shall make an application in such behalf in the prescribed manner to the prescribed authority. Under sub-section (3) if the said authority is satisfied that an application for registration is in order, he shall in accordance with such rules as may be prescribed, register the applicant and grant him a certificate of registration in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er a dealer if he makes a proper application in conformity with the rules, he is also under a compulsion to cancel the registration if any business, in respect of which a certificate has been granted to a dealer on an application made, has been discontinued. Whether such business has been discontinued or not is a question of fact. The duty to find out whether a business has been discontinued or not is an administrative act. Although it is not laid down in the Act and the Rules it would be necessary to give an opportunity to the dealer to show cause if it is intended to act under the provisions of sub-section (6) (a) of section 7, because it might affect the fundamental rights of the dealer to carry on business. This however has been done in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he declaration forms but this he abandoned. It is not possible for me to go into the question of declaration forms in this application. If his grievance is that in spite of furnishing security he is not being given declaration forms to which he is entitled, then he can take proper proceedings. The only question I am concerned with in this application is as to whether, the petitioner having ceased to do business at h is registered address the certificate of registration connected with that address was rightly cancelled or not. In my opinion there can be no doubt on the facts and circumstances of this case that the petitioner had ceased to carry on business at his registered address and that his certificate of registration was rightly cancell....