( 1 ) THE petitioner has been registered as a dealer under section 7 of the Central sales Tax Act, 1956 (hereinafter referred to as the Act ). In the certificate of registration issued to it, certain goods were specified under Sections 8 (1) (b) and 8 (3) of the Act On 10th September 1965 the petitioner-firm applied for amendment of the registration certificate so as to add thereto the following goods for purposes of sections 8 (1) (b) and 8 (3): "diesel locomotives, Motor vehicles, Cranes, Fork Lifts, Trollies and other equipments and vehicles, electrical bulbs and lighting fixtures". This prayer for amendment was allowed in part by the Sales Tax Officer, Shahdol, in regard to "electrical bulbs and lighting fixtures for factory". The amendment was, however, allowed in regard to other goods by the Commissioner of Sales Tax, madhya Pradesh by his order dated 18th May 1967. While allowing the amendment the Commissioner of Sales Tax, however, put a restriction on the number of goods the petitioner could purchase after paying the concessional rate of sales-tax under Section 8 (1) (b) and directed the amendment of the registration certificate by insertion of the following entries:

Diesel Locomotives

2

Cranes

3

Fork Lifts

6

Rly . line trollies

14

Hand Trollies

25

Trucks

10

Coal-loaders

2

Trailors

7

Tractors

3

The Commissioner of Sales Tax rejected the prayer of the petitioner that the amendment in the registration certificate should be made effective from the date, that is 10th September 1965, on which it submitted to the Sales Tax Officer, shahdol, its application for amendment.

( 2 ) THE petitioner now seeks a writ of certiorari for quashing the order dated 18th may 1967 of the Commissioner in so far as it restricted the number of goods that the applicant could purchase and made the amendment in the registration certificate effective from the date of the order of the Commissioner, namely, 18th may 1967. The petitioner further prays that a direction be issued to the respondents to delete the restriction put on the number of goods the petitioner could purchase and make the amendment effective from 10th September 1965.

( 3 ) HAVING heard learned counsel for the parties we have reached the conclusion that this application must be granted. There is no provision in the Central Sales tax Act or the Rules made thereunder giving to the authority issuing a certificate of registration power to restrict the number of goods that a dealer could purchase for the purposes of Section 8 (1) of the Act. On the other hand, Sections 7 (3) and 8 (3) speak of the "goods" to be specified in the certificate of registration as "goods of the class or classes" for the purposes of Section 8 (1 ). The expression "goods of the class or classes" clearly does not carry the implication of specification of the goods in the certificate of registration by the number of goods. The Commissioner of Sales Tax imposed a restriction on the number of goods the petitioner could purchase for the purposes of Section 8 (1) mainly persuaded by the reason that the certificate might be misused "if the quantum of goods were not to be specified in the certificate of registration". The possible misuse of the certificate can hardly afford any justification for putting a restriction on the number of goods the petitioner could purchase when there is no statutory provision empowering the authority granting the certificate to specify the goods in the certificate with reference to the number of goods that could be purchased. If a registered dealer misuses the certificate of registration granted to him, then the authority granting it has the power under Section 7 (4) of the Act to cancel it. In our judgment the restriction put by the Commissioner of Sales Tax on the number of Diesel Locomotives, Cranes, Fork Lifts, Railway Line Trollies, Hand Trollies, trucks, Coal-loaders. Trailers and Tractors that the petitioner could purchase after paying concessional rate of tax cannot be sustained.

(

Click Here to Read the rest of this document