1969 (5) TMI 53

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....62, has been made under section 21 of the U.P. Sales Tax Act (hereinafter referred to as the Act) against the petitioner. Admittedly the petitioner was granted an exemption certificate under rule 19 of the Rules framed under the Act in respect of foodgrains. The Assistant Commissioner, Sales Tax, U.P., cancelled the exemption certificate on 23rd of March, 1962. His order reads: "Whereas I am satisfied that M/s. Din Dayal Kesho Lal for the year 1957-58 have contravened the provisions of rules 2013(a), 2013(c) and 20B(i), Chapter V, of the U.P. Sales Tax Rules, 1948, I, P.N. Zutshi, Assistant Commissioner, Sales Tax, Kanpur Range, Kanpur, in exercise of the power vested in me under rule 25(a) of the abovesaid rules, hereby cancel the ex....

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....hat the fee deposited is less than that payable in accordance with the notification, he shall require the dealer to deposit the balance within a time to be fixed by him.   (e) If the Sales Tax Officer finds that the fee deposited by the dealer exceeds the amount payable, he shall order the excess to be refunded." (Underlined by us). A careful study of this provision reveals that in case the Sales Tax Officer is satisfied after making such enquiry as he deems necessary that the information given in the statement by the dealer is correct and that he (dealer) has deposited the correct fee, he shall have no option but to grant an exemption certificate. The use of the words underlined specially the words "shall issue" clearly show tha....

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....ot by the order of the Sales Tax Officer, but by the statutory provisions contained in the rules themselves. Once a certificate has been granted, it remains in effective force for the period of one year, that is, till the expiry of the assessment year in respect of which it is granted. That effective force cannot be capriciously destroyed or curtailed. A certificate can be cancelled only under rule 25 of the Rules, which reads: "25. Cancellation of certificates.-(a) The exemption certificate may be cancelled by the Assistant Commissioner (Executive) if he is satisfied that the dealer has contravened any of the provisions of this chapter. (b)...................................... The words used in this provision are significant. Fir....