2017 (4) TMI 877

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....veloper. The benefit of I.T.C. was reversed and thereafter notice was issued for cancellation of registration certificate. After affording an opportunity of hearing, registration certificate has been cancelled and affirmed by the Tribunal. Thus aggrieved, the dealer is before this Court. Learned counsel for the applicant submits that a wrongful claim of I.T.C would not constitute sufficient ground for cancellation of registration as dealer and at best the benefit of I.T.C. could be reversed, as has already been done herein. Learned Standing Counsel, on the other hand, submits that jurisdiction under Section (17) (11) (ix) has rightly been invoked and no interference is warranted. From the materials placed, this Court finds that onl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....along with simple interest at a rate of fifteen percent per annum for the period commencing on the date following the last date prescribed for submitting tax return of the tax period in which event has occurred and ending on the date on which amount has been deposited." The Act does not contemplate that if claim of I.T.C. is reversed the registration of a dealer could be cancelled in addition to reversal of I.T.C. By virtue of proviso to Section 14, the assessee would only be liable to pay interest at a rate of 15% per annum. The power to cancel registration of dealer is contained under Section 17 (11) of the Act, which reads as under:- "17(11) The registering authority, after giving reasonable opportunity of being heard to the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Raising of an incorrect claim of I.T.C. is not one of the grounds contemplated under Section 17 (11) for cancellation of registration. Sub-Clause 9 which is pressed into service, enables the authorities to cancel registration for any other 'sufficient cause'. The term 'sufficient cause' is a word of significance and has to be construed as being of same genus, as occurring in clause (i) to (viii) of Section 17 (11), following the principles of ejusdem generis. The grant of I.T.C., as well as its reversal is specifically dealt with under Section 13 and 14 of the Act. The consequence of wrongful claim of I.T.C. is specified. If the intent of legislature was to penalize dealer by having its registration cancelled, on account....