DWARKA PRASAD, J. - This reference has been made by the Board of Revenue for Rajasthan at Ajmer under section 15(3A) of the Rajasthan Sales Tax Act, 1954 (hereinafter called "the Act"), at the direction of this Court and following questions of law arising out of the order of the Board of Revenue dated 23rd January, 1970, have been referred :

"(1) Whether the assessing authority was justified in treating the exemption certificate not valid, even when it was not properly cancelled ?

(2) Whether the period of 30 days prescribed under rule 12 of the Act for filing renewal application is directory and whether the assessing authority was not competent to ignore the renewal on the ground of delay in the submission of the application and taking into consideration the turnover for the period from 1st April, 1957, to 5th May, 1957 ?"

The assessee is a dealer registered under the Act and carries on the business of selling allopathic medicines. The Government of Rajasthan by Notification No. F.21(7)SR/55 dated 14th April, 1955, granted exemption from payment of sales tax to dealers in allopathic medicines subject to their obtaining an exemption certificate on payment of fixed annual f