TMI Blog1996 (2) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... law to rely upon the certificate of registration of the selling dealer and to act upon it. Whatever may be the effect of a retrospective cancellation upon the selling dealer, it can have no effect upon any person who has acted upon the strength of a registration certificate when the registration was current. Also the learned Advocate-General, appearing for the department before the High Court, stated that the genuineness of the transactions between the registered dealer and the respondents was not in doubt and not disputed. This being so, it is difficult to see how there could have been a cancellation of registration with effect from a date that preceded the dates of the transactions and how, accordingly, the respondents could be made liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lekha Enterprises had been cancelled on 20th August, 1967, with effect from 1st January, 1967, and that, therefore, on the dates on which the respondents had purchased the goods from Sulekha Enterprises, Sulekha Enterprises could not be said to be a registered dealer. The Sales Tax Officer also imposed a penalty upon the respondents. The appeal by the respondents to the Commissioner of Sales Tax was dismissed. They went up to the Maharashtra Sales Tax Tribunal. It upheld the disallowance but ordered deletion of the penalty. On the application of the respondents, it stated the following question of law to the High Court: Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g dealer and to act upon it. Whatever may be the effect of a retrospective cancellation upon the selling dealer, it can have no effect upon any person who has acted upon the strength of a registration certificate when the registration was current. The argument on behalf of the department that it was the duty of persons dealing with registered dealers to find out whether a state of facts exists which would justify the cancellation of registration must be rejected. To accept it would be to nullify the provisions of the statute which entitle persons dealing with registered dealers to act upon the strength of registration certificates. 6.. It must also be noted that the learned Advocate-General, appearing for the department before the High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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