No auto cancellation of Registration of Purchasing dealer for fraud by selling dealer

Bright Star Plastic Industries Vs Additional Commissioner of Sales Tax (Orissa High Court at Cuttack) The Court finds merit in the contention of Mr. Harichandan that for the fraud committed by the selling dealer, which resulted in cancellation of a selling dealer’s registration, there cannot be an automatic cancellation of the registration of the purchasing dealer. Rule 21 of the OGST Rules reads as under: “21. Registration to be cancelled in certain cases. The registration granted to a person is liable to be cancelled, if the said person,- (a) does not conduct any business from the declar...