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TMI Blog2015 (8) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer was holding the said registration certificates from 1/7/2002 under the GST Act / VAT Act and from 1/7/ 2002 under the CST Act. 2.01. That after a period of one year, on 22/7/2003, the petitioner applied to add branch office at Surat and accordingly Surat was added as the place of business. That after a period of three months from the date of obtaining registration certificates, on 22/11/2003, the petitioner - dealer applied to add goods to be dealt with in the business namely silver-thread, plastics, all types of thread, strings, ready-made garments, weight paper, plastic scrap, etc. 2.02. That in the year 2008, the main place of the business of the petitioner dealer namely Botad was visited by the offices of the respondent and it was found that the sign board of the petitioner - dealer was there on the shop but the man sitting there i.e. one Mr.Munaf was selling vegetables and he told the officer that the said shop was taken by him on rent from one Mr.Anvarbhai before 15 days. 2.03. That considering the returns for the A.YS. 2006- 2007 and 2007-2008, it is found that the petitioner dealer had done alleged purchases mainly from M/s. Vishal Traders and M/s. Shiv Enterpris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2014 came up for hearing before the Division Bench of this Court and the Division Bench vide order dated 21/3/2014 disposed of the aforesaid Tax Appeals, modifying the conditions imposed by the VAT authority requiring the petitioner - dealer to furnish security to the tune of Rs. 2 Lacs in terms of section 28(2) of the VAT Act. Both the appeals came to be allowed to the aforesaid extent. However, the Division Bench did not expressed any opinion on the action of the authority in cancelling the registrations ab-initio. 2.12. At this stage, it is required to be noted that it was brought to the notice of the Division Bench that their registration certificates under the VAT Act as well as CST Act have been cancelled ab-initio for which separate proceedings are initiated. Therefore, the Division Bench specifically clarified that the aforesaid order shall have effect only if the said cancellation is set aside. 2.13. That the order cancelling the registration certificates ab-initio under the VAT Act as well as CST Act were the subject matter of Revision Applications before the learned tribunal being Revision Application Nos. 58 and 58 of 2010. 2.14. That by the impugned judgement and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench of this Court in the case of Giriraj Sales Corporation Vs. State of Gujarat and others, reported in (2002) (Vol.125) Sales Tax Cases 369. 3.06. Mr.Kaji, learned advocate appearing on behalf of the petitioner - dealer has further submitted that even otherwise also, the impugned orders cancelling the registration certificates ab-initio is bad in law and in breach of principles of natural justice. It is submitted that statement of proprietors of M/s. Vishal Traders and M/s. Shiv Enterprise which have been relied upon by the authority, have never been supplied to the petitioner - dealer. It is submitted that therefore when the aforesaid statements of the proprietors of M/s. Vishal Traders and M/s. Shiv Enterprise have been considered by the appropriate authority while cancelling the registration certificates of the petitioner and copy of which have not been supplied to the petitioner, the order cancelling the registration certificates ab-initio, is in breach of principles of natural justice. 3.07. Mr.Kaji, learned advocate appearing on behalf of the petitioner - dealer has further submitted that the learned tribunal has not properly appreciated the fact that in fact, the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case on hand and/or the same shall be of any assistance to the petitioner - dealer. By making above submissions, it is requested to dismiss the present Special Civil Applications. 5.00. Heard the learned advocates appearing on behalf of the respective parties at length. 5.01. At the outset, it is required to be noted that the registration certificates of the petitioner under the VAT Act as well as CST Act have been cancelled ab-initio. The orders cancelling the registration certificates ab-initio have been confirmed upto the learned tribunal. From the findings recorded by the learned tribunal, which is not denied and/or disputed, the petitioner had shown / made purchases of Rs. 104.19 Lacs in the year 2007-2008 from M/s.Vishal Traders and made after its registration certificates were cancelled on 1/4/2007. It is required to be noted that registration certificates of M/s. Vishal Traders and M/s. Shiv Enterprise have been cancelled ab-initio, as it was found that they had indulged into billing activities only. It is required to be noted that, therefore, M/s.Vishal Traders was not competent to issue tax invoices once its registrations were cancelled. As rightly observ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued to the petitioner, the order cancelling the registration certificates is in breach of the principles of natural justice, is concerned, it is required to be note that from the order passed by the authority cancelling the registration certificates, it appears that while cancelling the registration certificates, the authority has not relied upon the same same. On the contrary, though sufficient opportunities have been given, the petitioner did not appear before the authority and did not produce relevant material / record to show genuineness of the transactions. Under the circumstances, it cannot be said that the order passed by the authority cancelling the registration certificates ab-initio, is in breach of principles of natural justice. 5.05. Now, so far as the reliance placed upon the decision of the Hon'ble Supreme Court in the case of Suresh Trading Company (supra) and decision of the Division Bench of this Court in the case of Giriraj Sales Corporation (supra), are concerned, in the facts and circumstances of the case on hand, the said decisions shall not be applicable tot he facts of the case on hand and/or they are not of any assistance to the petitioner. In the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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