TaxTMI 
TaxTMI 
1974 (2) TMI 64
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.... 10, Madan Street, Calcutta-13. Memorandum No. CL/2350A/4679 dated Cal. the 25-5-1961 Sri M. Popli, Proprietor. To M/s. Dawood & Co., 12, Lower Chitpur Road, Calcutta. You are hereby informed that as desired by the Commissioner, Commercial Taxes, your file under the Bengal Finance (Sales Tax) Act, 1941 (R.C. No. CL/2350A) has been transferred to this section and I have assumed jurisdiction over the said file. I have information that you are not carrying on any business. You are, therefore, being given an opportunity to adduce evidence of your business on 27-5-61 at 10.30 A.M. by producing before me or causing to be produced before me on that date and time, the following records: 1.. Cash book (from 1-1-61 to 26-5-61) ....
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....ill carrying on the business in respect of which he had been granted the registration certificate. On perusal of the dealer's file the Commercial Tax Officer found as follows: "(a) Sri S.K. Chatterjee, Commercial Tax Officer, Central Section, on 8th August, 1959, had directed the respondent to produce on 10th August, 1959, its records of purchases and sales since 10th February, 1959. The respondent failed to produce these records and had asked for time. Sri Chatterjee then agreed to accompany the dealer to his registered place of business to inspect the records there. But the dealer declined to show him the records. (b) Sri Chatterjee on 17th August, 1959, again directed the dealer to produce before him on 22nd August, 1959, its then cur....
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.... Tax Officer passed an order cancelling the dealer's registration certificate under section 7(6)(a) of the Act and wrote to the dealer as follows: "You are hereby informed that your registration certificate No. CL/ 2350A has been cancelled under section 7(6)(a) of the Bengal Finance (Sales Tax) Act, 1941. You are, therefore, directed to return your said registration certificate and unused declaration forms, if any, to this office within 3 days from the date of receipt of this letter. Commercial Tax Officer, Central Section, West Bengal." The respondent filed a writ petition challenging the order cancelling his registration certificate on which a rule nisi was issued on 13th June, 1961. On 5th August, 1964, the trial court made t....
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....ial Tax Officer. It appears that the petition was rejected not in his presence, but later in the day after he had left. However, this does not seem to have caused any injury because in the petition for time the respondent stated that it was "absolutely impossible" to produce the records asked for on that day. The Commercial Tax Officer rejected the prayer for adjournment, not unreasonably, and proceeded to decide whether the dealer had discontinued his business. On the material before him, the Commercial Tax Officer found that the dealer had ceased to carry on the business in respect of which the registration certificate was granted. On this finding the only course open to the Commercial Tax Officer was to cancel the dealer's registration c....
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....n of his registration certificate when it is found that the dealer has discontinued the business. Section 7(6)(a) of the Bengal Finance (Sales Tax) Act, 1941, clearly provides that after it is found that the dealer has discontinued the business his registration must be cancelled, no option or discretion is left with the Commissioner or any authority to whom he may have delegated his power under section 15 of the Act. The notice on the dealer requiring him to prove that he was still carrying on the business is also a notice of the step that under the law the Commissioner or the authority to whom he may have delegated his power must take if it is found that the business has been discontinued. The view we take finds support from a decision of ....