( 1 ) BY this petition under Article 226 of the Consti- tution of India the petitioner-firm prays for appropriate writs orders and directions to quash and set aside the order of the Sales-tax Officer-3 Division II Jamnagar of 5/05/1979 seeking to cancel the Recognition Certificate bearing No. R-701-R-008 with affect from 31/05/1979 since the petitioner-firm had failed to maintain correct and complete books of account of the business as required under sec. 58 (1) of the Gujarat Sales-Tax Act 1969 (hereinafter referred to as the Gujarat Act ).

( 2 ) IN order to appreciate the challenge to the impugned order of cancellation of the Recognition Certificate of the petitioner-firm a few facts need be set out. The petitioner-firm is a dealer registered under the Gujarat Act as well as under the Central Sales-tax Act 1956 It also holds Recognition Certificate under the Gujarat Act. It is claimed by the petitioner-firm that its annual turnover of the sales was more than Rs. 15 lacs and substantial portion thereof was in the course of inter-State trade and commerce. The petitioner-firm further claims that it used to submit the returns regularly and has paid the tax due thereon as per the provisions of the Gujarat Act. No contumacious breach of the provisions of the Act or the Rules is said to have been committed by the petitioner- firm.

( 3 ) IT appears that on 1/02/1979 the Sales-tax Officer-3 Enfor- cement Branch Jamnagar had visited the business place of the petitioner- firm for spot-survey and sought same clarifications in respect of certain accounts. It further appears that after this visit of the Sales-tax Officer by notice of 20/03/1979 the respondent herein who is designated as Sales-tax Officer-3 Division II Jamnagar called upon the petitioner-firm to show cause why the Recognition Certificate of the firm should not be cancelled since he had been informed by the Sales-tax Officer-1 Enfor- cement Branch Jamnagar by his letter of 17/03/1979 that the account books of the petitioner-firm have been seized. The petitioner-firm was required to submit its explanation to the show cause notice within three days of the receipt thereof. The petitioner-firm by its letter of 22/03/1979 protested before the respondent herein that he had no jurisdiction power or authority under the Gujarat Act to cancel the Recognition Certificate merely because the account books were seized and it was not proper to propose such an action. The petitioner-firm further stated in the said letter that if there was any want of satisfactory explanation before the Sales-tax Officer-2 Enforcement Branch Jamnagar in reply to the queries raised by him in course of his spot-survey held on 1/02/1979 it was only because the person in charge of the account was not present on that day. To the surprise of the petitioner-firm the respondent herein by the impugned order decided to withdraw the recog- nition granted to the petitioner-firm under sec. 32 of the Gujarat Act in exercise of his power conferred by sec. 35 (2) (b) of the Gujarat Act. It is this order which is under challenge in this petition before us.

( 4 ) PURSUANT to the Rule nisi issued by this Court (by the learned Single Judge during the Summer Vacation) by his order of 5/06/1979 the respondent herein has filed his affidavit-in-reply supporting the impu- gned order on the ground inter alia that the cancellation of the Reco- gnition Certificate was justified since the petitioner-firm had failed to maintain correct and complete books of account as required under sec. 58 of the Gujarat Act.

( 5 ) AT the time of hearing of this petition three grounds have been urged on behalf of the petitioner-firm as under: (1) The impugned order of cancellation of the Recognition Certi- ficate is beyond the jurisdiction authority and power of the respondent inasmuch as the petitioner-firm has not been given any opportunity to meet with the allegation that the petitioner- firm had failed to maintain proper and complete