WP/36757/2003 of M/S.FISHER PUMPS P.LTD., 9/10 Vs THE COMMERCIAL TAX OFFICER, on 16 December 2003

:ORDER

On direction, learned Government Advocate takes notice for therespondent.

2. Aggrieved by the proceedings of the respondent dated30.09.2003, canceling the certificate of registration granted to thepetitioner under the provisions of Tamil Nadu General Sales Tax Act, 1959 andCentral Sales Tax Act, 1956 with retrospective effect from 01.04.2003, thepetitioner has filed the above writ petition to quash the same and direct therespondent to receive the applicable renewal fees and renew the certificate ofregistration for the Assessment Year 2003-2004 with effect from 01.04.2003.

3. The learned counsel for the petitioner by drawing myattention to Proviso to Sub-section (3) of Section 21 of the Tamil NaduGeneral Sales Tax Act, 1959 would contend that in the light of the saidprovision, the impugned order cannot be sustained. He also relied on aDivision Bench decision of this Court rendered in the case of Sun Gas Pvt., Ltd., vs. Registrar, Tamil Nadu Taxation Special Tribunal reported in 125 STC496.

4. In order to appreciate the said contention, it is relevant to refer the above provision.

" Section 21 (3): The certificate issued under sub-section (2) *[ shall bevalid for one year or five years, as the case may be] and shall be renewed insuch manner and within such period as may be prescribed, on payment of the feespecified in sub-section (1). The certificate shall be deemed to have beencanceled unless it has been renewed:

Provided that a registered dealer who fails to renew the certificate ofregistration within the prescribed period shall be permitted to renew thecertificate before a further period, as may be prescribed, on payment ofrenewal fee and also a penalty equal to renewal fee. "

5. A reading of the above proviso appended to sub-section (3)

of Section 21 of TNGST Act, 1959 clearly shows that a registered dealer, whofails to renew the certificate of registration within the prescribed time ispermitted to renew the certificate before a further period, on payment ofrenewal fee and also a penalty equal to renewal fee. It is clear from theabove provision that if a registered dealer fails to renew the certificate ofregistration, it cannot cancel the right to carry on business issued earlier.In other words, as per the proviso, the dealer must be given an opportunity torenew the certificate for further period on payment of renewal fee and penaltyas provided in the proviso. The said recourse has not been followed by therespondent before passing the impugned order.

6. In this regard, it is also useful to refer the Division Bench decision of this Court referred to above 125 STC 496 (cited supra). Itis seen that while considering similar provision, the Division Bench, aftersetting aside the order of cancellation, canceling the certificate ofregistration of the assessee, liberty is given to the Revenue to issue showcause notice to the assessee with a direction to give him time to seek renewaland thereafter pass appropriate order.

In the light of the above referred statutory provision, the impugned order of the respondent is quashed and direction is issued to therespondent to receive the application for renewal along with fee and passorders in accordance with law. The petitioner is granted two weeks from todayfor submitting his application for the above said purpose. The writ petitionis allowed. No costs. Consequently, connected WPMP., is closed.

Index:YesInternet:Yes

To

Conclusion

The Commercial Tax OfficerAvarampalayam Assessment CircleCoimbatore.