1971 (9) TMI 181

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....egistration of M/s. Jai Hind Stores in November, 1956, could be enforced with retrospective effect against the present assessee so as to deprive it of its right to claim exemption of the sales amounting to Rs. 62,859-11-3 made during the period from 1st April, 1956, to 30th June, 1956, from being included in its taxable turnover for the year 1956-57?" The dealer dealt in the resale of all kinds of electric goods during the period 1956-57. The dealer sold goods worth Rs. 62,859-11-3 to M/s. Jai Hind Stores, a registered dealer. The registration certificate of Jai Hind Stores was cancelled under sub-section (7) of section 7 of the Act as per order made towards the end of November, 1956. The order was made effective from 1st April, 1956. Th....

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....assumed, and was not disputed, that the goods sold to Jai Hind Stores were of the category specified in the certificate of registration of that concern. The dealer was not allowed deduction because the sales tax authority took the view that the cancellation of the registration certificate of Jai Hind Stores had a retrospective effect. In this respect we find that the cancellation of the registration certificate of Jai Hind Stores was under sub-section (7) of section 7 of the Act. According to that sub-section, the Commissioner may at any time for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, cancel any certificate of registration. Such cancellation has to be notified under section 9 of the Act ....

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.... mean either the date of the order or a date subsequent to the date of the order and not a date prior to the date of the order. The scheme of the Act, in our view, does not warrant the giving of retrospective effect to the order of cancellation of a registration certificate. In the present case, as would appear from the resume of facts given above, the certificate of registration, which had been granted to Jai Hind Stores, was cancelled in November, 1956. Chhabra Electric Stores, the dealer, claimed exemption with respect to the goods sold to Jai Hind Stores for the period prior to the date of the order of cancellation of the registration certificate. At the time those sales were made in favour of Jai Hind Stores, the registration certifica....