TaxTMI 
TaxTMI 
2009 (11) TMI 865
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....der their registration certificates under both the Acts within seven days of the receipt of notice. Subsequently, the registration certificates issued under both the Tamil Nadu General Sales Tax Act and under the Central Sales Tax Acts were cancelled with effect from April 1, 2004. The grievance of the petitioner is that there is no separate notice issued for cancellation of the registration certificates under section 7 of the CST Act and there is no personal hearing granted to the petitioner. It is further stated that the provision of the CST Act does not provide for cancellation of registrations. Consequently, the order passed is without jurisdiction. The learned counsel for the petitioner pointed out that subsequent to the cancellation, the petitioner went in for fresh assessment proceedings. The first respondent passed the order for the subsequent year on September 18, 2009. The petitioner states that at that time only, they came to know that they were treated as unregistered dealers for the period from April 1, 2004 to October 14, 2004. The petitioner contends that even though they have obtained fresh registration with effect from October 15, 2004, their registration is val....
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....Court pointed out that as to the question as to whether the petitioner purchased any goods at any point of time in the course of the inter-State trade or commerce prior to the date of registration, evidence showed that the assessee did not purchase any goods prior to the date and hence penalty cannot be levied. As to the issue on the levy of penalty under section 10A of the CST Act, the court pointed out that the certificate issued to the assessee under section 7(2) of the CST Act showed the clear mentioning that the certificate was valid until it was cancelled. There was no factual cancellation or a fictional cancellation under law by the application of any provision. The court further held that the section 7(4)(b) of the CST Act provides for the cancellation of the certificate under the stated circumstances and that there is no provision which invalidates a registration certificate under the CST Act, the moment the dealer does not get a renewal of the registration under the Orissa Sales Tax Act nor is there an automatic cancellation under the CST Act for not being a dealer for a specified period under the Orissa Sales Tax Act. As for the present case is concerned, as early as ....
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....mply with an order under subsection (3A) or with the provisions of sub-section (3C) or sub-section (3E) or has failed to pay any tax or penalty payable under this Act, or in the case of a dealer registered under sub-section (2) has ceased to be liable to pay tax under the sales tax law of the appropriate State or for any other sufficient reason." The learned counsel for the petitioner placed heavy reliance on the provisions of section 7(4) of the CST Act that the grounds of cancellation cannot be anything other than what is specified under the section. As for this contention is concerned, admittedly, the petitioner had no grievance at all as to the notice sent on September 1, 2004 proposing to cancel the registration within seven days of the receipt of the notice. The petitioner was called upon to produce particulars if it had paid the renewal fee within the prescribed period; otherwise, the notice stated that the proposal would be confirmed with effect from April 1, 2004 and the petitioner was also asked to get their pending assessments completed and to surrender the unused declaration forms, if any, obtained from the respondent's office. The notice was received by the p....
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....been cancelled unless it had been renewed. Proviso to sub-section (3) states that even if a registered dealer fails to renew the certificate of registration within the period prescribed, namely, as prescribed under rule 24, sub-rule (9) of the TNGST Rules, he shall be permitted to renew the certificate, as per rule 29A of the TNGST Rules, namely, up to 30th of April of the year for which renewal is requested on payment of penalty equal to the fee payable. Going by the said section, in the absence of any renewal application made within the time prescribed, or for that matter, even beyond the period as prescribed under rule 29A, the certificate of registration under the TNGST Act goes for a deemed cancellation as per sub-section (3) of section 21. As far as the assessee is concerned, being a dealer having a registration under section 7(1) of the CST Act, the mandatory registration under the TNGST Act stands cancelled by virtue of section 21(3). As far as sub-section (4) of section 7 of the CST Act is concerned, the cancellation of the registration could be for any sufficient reason other than what had been already specified under sub-clause (b) of sub-section (4). The registration un....