TMI Blog2008 (12) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... has already been defaulted by the dealer as it appears from the facts in question, and, further it has been specifically stated, in case such application made after the said time-limit, certificate for registration shall be valid from the date of order of granting registration. In the facts and circumstances of the case, such rule has been prescribed by the authority which has been given authority under section 114 of the VAT Act and furthermore, under section 23(2) of the said Act. Therefore, no infirmity in the said rule which has been framed by the authority without taking into consideration the moot and reasons as has been stated for enacting the Act in question.Accordingly, in our considered opinion, there is no violation by the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for registration in the prescribed manner to the prescribed authority, and such application shall be accompanied by a declaration in the prescribed form duly filled up and signed by the dealer concerned for making such application and after being satisfied of such application, the prescribed authority shall grant a certificate of registration in such form as has been specifically mentioned in the said Act and subject to the conditions as prescribed thereunder. It is also to be noted that such certificate is to be issued within a particular period as mentioned therein. The other point which has been tried to be urged before us is sub-rule (2) of rule 6 which has been framed by the State authorities under section 114 of the said VAT Act sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich sets out hereunder: 6(2) where the dealer has made the application within the timelimit specified in sub-section (2) of section 23, the certificate of registration shall be made valid from the date of incurring the liability and in case of such application made after the said time-limit, the certificate of registration shall be valid from the date of order of granting registration. It specifically appears from the said rule that the dealer has to make an application within the time-limit mentioned in section 23(2). In the instant case, it appears that the dealer has failed to apply within the time mentioned in section 23(2) and the certificate of registration shall be made valid from the date of incurring liability which has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction imposed under sub-rule (2) of rule 6 of the VAT Rules is beyond the rule-making power of the State as conferred by section 114 of the VAT Act because of the fact that the State has been empowered to frame Rules only for carrying out the purposes of this Act. While admitting that reduction of cascading effect of taxation by allowing rebate of input-tax credit at the time of purchase of taxable goods by a registered dealer from a registered dealer was one of the objectives behind framing of the VAT Act, the Legislature has also intended to widen the tax base and ensure better compliance. Compliance means to act in accordance with a wish or command, to meet some specified standard. The provision of the Act has imposed certain restriction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod prescribed under section 23(2) of the VAT Act without having any reasonable cause, the Commissioner may, by an order in writing after giving the dealer an opportunity of being heard, impose upon such dealers by way of penalty a sum not less than five hundred rupees and not exceeding one thousand rupees for each month of default, in such manner as may be prescribed. Such power has been delegated to Deputy Commissioner, Assistant Commissioner, and Sales Tax Officer and prescriptions have been made under rule 8 of the VAT Rules. In view of that we do not find any reason to accept the contention of the learned counsel for the petitioner as has been tried to be canvassed before us by him and also there is no reason to admit this applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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