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2021 (7) TMI 776 - HC - VAT and Sales TaxMisconduct under Rule 3 of Karnataka Civil Services (Conduct) Rules, 1966 - registration certificate issued without proper verification - information furnished by the applicant in Form No.1 as required under Rule 9(6) of the Karnataka Sales Tax Rules, 1957, not investigated - HELD THAT:- As the tribunal has quashed the order of punishment on the sole ground that act of respondent issuing registration without proper verification was not a misconduct same requires to be examined. From the enquiry report, it is seen that, applicant had mentioned date of commencement of business as 01.04.1999, which was reported by the Inspector to be incorrect. Respondent, who was the responsible officer, was required to have taken hint to make further enquiry even from the report submitted by the Inspector - Sub-rule 6 of rule 9 very clearly stipulates that the Registering Authority should be satisfied after making such enquiry as he thinks necessary that particulars mentioned as correct and complete. Admittedly, application was incomplete in more than one way. Despite the same, respondent without any more proceeded to issue registration relying upon the recommendation made by the Inspector. Therefore, abdication of duty, failure to perform duty in the manner provided is writ clear in this matter. The tribunal allowed the application and set aside order of punishment only on the ground that allegation against respondent did not amount to misconduct. The reason assigned by tribunal is that Section 10 of the KST Act vested discretion in the Registering Officer about conduct of enquiry and as the officer in this case had got the application particulars verified through the Inspector, who recommended for registration, his decision to issue registration was taken in good faith, which cannot be termed as ‘misconduct’ - It was also observed that disciplinary authority cannot presume that failure of respondent to verify documents before registration resulted in the dealer indulging in malpractice. The ground that the allegation against respondent did not amount to misconduct does not carry any merit, so also, finding that the charge is not distinct or definite - further in the instant case, respondent was a Commercial Tax Officer and registering authority. The vesting of power of registration is coupled with duty to verify particulars of the applicant seeking registration. The purpose of registration is to enable proper assessment and collection of tax by Government and also to find and prevent evasion of payment of tax. Very contents of the reply submitted by respondent reveals that he is aware of loss suffered by State. As respondent admitted loss caused to the State, there is no merit in the observation that loss caused to the State was not established. Lastly, reference to or reliance upon rule 181 whereunder the function of verification of particulars in the application for registration is assigned to the Commercial Tax Inspector under the Karnataka Value Added Tax Rules, do not avail to respondent as the provisions of the KST Act and rules are not on par with the same. In any case, they do not discharge the obligation cast upon the Registering Officer to verify correctness and completeness of particulars mentioned in the application and to record satisfaction about the same. The impugned order passed by the tribunal is capricious and perverse and is therefore, liable to be set-aside - Petition allowed.
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