B.P. Jeevan Reddy, C.J. - (1.) THE petitioner is a tendu leaves contractor. He was issued a certificate in Form No. 27C under Rule 37C on account of which he was exempt from the operation of Section 206C read with Section 44AC. His complaint is that the said certificate has been cancelled on August 3, 1990, without notice to him and without affording any opportunity of hearing to him.
(2.) IN the first instance, we directed the petitioner to apply for copies of the cancellation order and show-cause notice, if any, preceding it. When we were told that they are not being supplied by the respondents, we called upon learned standing counsel to produce the relevant record. Sri B. Dyala has, accordingly, produced the record today. From the record, it is clear that the cancellation was effected without giving a show-cause notice and without giving any opportunity of hearing to the petitioner. It appears that the reason for cancellation is that it was issued by the INcome-tax Officer of Ward No. 2 whereas the petitioner is an assessee in Ward No. 1. The implication is that the INcome-tax Officer, Ward No. 2, had no authority to issue such a certificate. Even if that was so, a notice must have been given to the petitioner giving him an opportunity to meet the ground or grounds for cancellation. Since that has not been done in this case, the impugned order is quashed. The writ petition is allowed in the above terms. No order as to costs. It is made clear that this order does not preclude the appropriate authority from taking proceedings for cancellation of the certificate in accordance with law. It is made clear that before effecting any cancellation, an opportunity of hearing shall be given to the petitioner.
(3.) IF a show-cause notice is issued within ten days of producing a certified copy of this order before the first respondent, the petitioner shall be allowed to purchase the tendu leaves from the Department on depositing half the tax due in accordance with Section 206C and furnish a bank guarantee for the balance half. IF, however, the show-cause notice is not issued within the said period, this direction shall not operate. The petitioner shall produce a copy of this order before the first respondent within a week from today.;