Section 6 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962 in hindi
Cancellation of registration certificate.
- (1)The Commissioner may cancel any certificate of registration granted to a dealer, if--
- (a)he has ceased to carry on business; or
- (b)any tax payable under section 3 is not duly paid by him; or
- (c)there is any breach of any of the provisions of this Act, the rules made thereunder or the conditions subject to which the registration certificate has been granted; or
- (d)he has been convicted under the provisions of this Act: Provided, that no order shall be passed--
- (i)under clause (a) unless the dealer was served with a notice, or
- (ii)under clause (b), clause (c) or clause (d), unless the dealer was given a reasonable opportunity of being heard: Provided further, that such cancellation shall not absolve the dealer from his liability to pay tax and other dues under this Act, nor bar other action as may be taken against him under this Act.
- (2)The dealer shall not be entitled to any compensation for any loss or damage directly or indirectly suffered by him by reason of cancellation of the certificate under sub-section (1).
Summary
- The Commissioner can cancel a dealer's registration certificate for four main reasons.
- The reasons are closing the business, failing to pay the required tax, breaking the rules of the Act or the certificate, or getting convicted under the Act.
- Before cancelling because a business closed, the Commissioner only needs to serve a notice, but for the other three reasons, the dealer must be given a reasonable opportunity to be heard.
- Losing a certificate does not erase any unpaid taxes or stop other legal actions against the dealer.
- A dealer cannot claim financial compensation for any losses caused by their certificate being cancelled.
Practical examples
FAQ
1. If my certificate is cancelled, do my old tax debts disappear?
No, cancellation does not absolve you from liability to pay tax and other dues under this Act.
2. Can the government cancel my registration without any warning?
No, the Commissioner must either serve you a notice or give you a reasonable opportunity of being heard, depending on the reason for cancellation.
3. If cancellation ruins my business, can I sue for compensation?
No, the law states that the dealer shall not be entitled to any compensation for loss or damage caused by the cancellation.
4. Can committing a crime under this Act cost me my certificate?
Yes, being convicted under the provisions of this Act is grounds for cancellation.
Test yourself
Q1.Under Section 6 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, which of the following reasons for cancellation only requires a notice to be served, rather than a full opportunity to be heard?
Q2.Under Section 6 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, what effect does the cancellation of a certificate have on a dealer's unpaid tax liabilities?
Q3.Under Section 6 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, what is a direct consequence to a dealer's registration if they ignore the tax rates set under Section 3 and fail to pay the money owed?
Q4.Under Section 6 of The Manipur (Sales of Motor Spirit and Lubricants) Taxation Act, 1962, if a dealer loses substantial revenue because their certificate was cancelled, how much compensation are they entitled to claim from the government?