1997 (7) TMI 647

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....16-A of the Orissa Sales Tax Rules, 1947 (in short, "the Rules"). The order of cancellation was challenged before the Commissioner of Sales Tax, Orissa. By order dated March 11, 1997 the Additional Commissioner of Sales Tax who heard the revision petition in each case, upheld the order directing cancellation of the certificate of registration. Grounds which weighed with the Sales Tax Officer to direct cancellation was the petitioner which was granted the certificate of registration as an S.S.I unit for manufacturing certain articles, was found not to be carrying on any activity whatsoever. No manufacturing activity by the so-called unit was even carried out and no machinery or raw material was noticed in the premises of the petitioners. Sal....

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....ty. Placing reliance on the reports also the revisional authority held that the cancellation was proper. 3.. In support of the application Mr. L. Pangari, learned counsel submitted that section 9(6)(c) of the Act which permits cancellation of certificate of registration is not applicable to the facts of the case. It was also submitted that before utilising the reports of the two Sales Tax Officers no opportunity was granted to the petitioner in each case to have its say in the matter. The learned counsel for revenue, however, supported the order stating that requisite opportunities were granted and in the circumstances action under section 9(6)(c) was proper. 4.. Section 9(6)(c) authorises cancellation of registration with effect from th....

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....ble, may order cancellation of the registration with effect from a date to be specified in the order. Reasons are the links between the materials on which certain conclusions are based and the actual conclusions. The word "sufficient" means "adequate", "enough", "as much as may be necessary to answer the purpose intended". It embraces no more that which provides a plentitude which, when done, suffices to accomplish the purpose intended in the light of existing circumstance, and when viewed from reasonable standard of practical and cautious men. The expression "sufficient reason" implies presence of legal and adequate reason. Obviously the Sales Tax Officer has power to direct cancellation where really no manufacturing activity in carried on....