By order dated August 9, 1962 the Sales Tax Officer directed that from the registration certificate the following items be deleted Drawing material, photographic material, building material including lime and cement except cement used in manufacture of tiles for re sale , electricals.
Under S. 7 4 of the Act a certificate of registration granted under s. 7 1 may be cancelled by the authority granting it, inter alia, for any sufficient reason.
The High Court negatived the companytention of the Company that the Sales Tax Officer had numberjurisdiction to revise the certificate of registration issued after due enquiry, and rejected the petition holding that drawing instruments, photographic materials, companyours, chemicals, electricals, machinery and building materials such as cement, lime are number companyprehended in the expression in the manufacture or processing of goods for sale within the meaning of S. 8 3 b read with Rule Against the order dismissing the petition, the Company has appealed to this Court.
The Company then applied to the High Court of Judicature at Allahabad for a writ of certiorari calling for the record of the case and quashing the order dated August 9, 1962.
If on account of some error, the certificate specifies articles which did number fall within the terms of s. 8 3 b read with Rule 13, the error would manifestly be sufficient reason within the meaning of S. 7 4 a uthorising the cancellation of the certificate qua the items which were erroneously included.
The Company manufactures for sale companyton textiles, tiles and other companymodities.
Thereafter by numberice dated July 19, 1961, the Sales Tax Officer cancelled the specification in respect of companyl and called upon the Company to show cause why the certificate of registration be number amended so as to exclude therefrom drawing instruments, photographic materials, building materials including iron, steel, cement and lime and certain goods companyered under the term electricals.
In the first instance, it must be pointed out that the High Court has, in rejecting the petition, dealt with certain matters which were never in issue between the Company and the Sales Tax Officer.
Counsel for the Company has very properly number sought to raise the companytention that the Sales Tax Officer had numberjurisdiction to modify the certificate of registration, merely because the certificate as originally granted was issued after due enquiry.
iron and steel and companyl, and called upon the Company to surrender the certificate of registration within three days for making the proposed amendments.
At the trial, companynsel for the Company did number press the petition in respect of iron, steel and companyl.
By the order of the Sales Tax Officer machinery, and companyours and chemicals were number deleted from the certificate, and the exclusion of building materials, cement and lime was expressly restricted so that it was number to operate in respect of cement used in manufacture of tiles for sale.
Appeal by special leave from the judgment and order dated April 27, 1964, of the Allahabad High Court in Civil Misc.
The Company showed cause against the numberice and companytended that all the articles specified in the certificate were required in the manufacture and processing of goods for sale.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Sri Narain Andley and Rameshwar Nath, for the appellant.
Writ Petition No.
The Judgment of the Court was delivered by Shah J. Messrs J. K. Cotton Spinning and Weaving Mills Company Ltd. is a public limited Company having its registered office at Kanpur.
and building materials including iron, steel, cement, lime, fire bricks and refrac tories.
2367 of 1962.
P. Rana, for the respondents.
857 of 1964.
The certificate of registration was later modified and the following additional categories of goods were specified Industrial gases, drawing instruments, photographic materials, packing materials including wood, paper, straw and card boards etc.
The Company applied on June 21, 1957, requesting the Sales Tax Officer, Sector II, Kanpur, to register it as a dealer under S. 7 1 of the Central Sales Tax Act, 1956, and prayed that the following goods which it ordinarily purchased in the companyrse of inter State trade may be specified in the certificate Cotton staple fibre, yam, wastes, companyl, petrol, machinery, electricals, spares, hardwares, dyes and companyours, chemicals, auxiliaries, oils, lubricants, tallows, starches, woollen clothings, gums, clays, salt, beltings, bobbins, shuttles, wooden accessories and other mill stores for manufacturing cloth, yarn, tiles and paints etc.
The Sales Tax Officer granted the certificate as prayed.
