1963 (11) TMI 67

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.... as guaranteed by the Constitution and is an unreasonable restriction against the freedom of carrying on business, calling or profession and is ultra vires of the State Legislature?" The respondent, M/s. Rustam Glass Works, Ferozabad, is a dealer in glass bangles. It was registered under section 8-A of the U.P. Sales Tax Act, and the registration certificate was renewed for the year 1959-60. It appears that as it was heavily in arrears of sales tax, it was called upon to furnish security in the sum of Rs. 40,000 for the continuance of the registration certificate. This security was not furnished by the respondent and thereupon the Sales Tax Officer made an order dated 20th November, 1959, cancelling the registration certificate. The respond....

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....ificate of registration. The consequence of the grant of that certificate is that a dealer is entitled to certain benefits, among them being his right to realize sales tax from his customers. Section 8-A(6) empowers the assessing authority to require a dealer to furnish security as a condition for the grant of the certificate of registration and also empowers it, even after the certificate has been granted, to require the dealer to furnish security to enable the certificate to continue to have effect. It appears that action was taken by the Sales Tax Officer under section 8-A(6) and, upon the failure of the respondent to furnish the security called for, the certificate renewed earlier was cancelled by the Sales Tax Officer. The first provis....

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....g a revision application. The requirement of the Act directing a dealer who is liable to sales tax, to obtain a registration certificate is not challenged. The challenge is directed only against a condition imposed upon the filing of the revision application. The right of filing a revision application has been conferred by statute. If the statute had not conferred that right, the question raised before us would not have arisen at all. The Legislature was not compelled to confer upon the dealer a right to proceed in revision. If it did confer that right it was also open to it to attach any condition to the exercise of that right. The right of proceeding in revision was not a right conferred by the Constitution upon the dealer. Had it been a ....