JAGDISH SAHAI, J. - (1.) THE petitioner, M/s. Din Dayal Kesho Lal (hereinafter referred to as the petitioner), has approached this court under article 226 of the Constitution of India and has prayed for the issue of "a writ, order or direction in the nature of certiorari quashing the assessment order dated 1st August, 1962 (annexure III)."
(2.) THE assessment order dated 1st August, 1962, has been made under section 21 of the U.P. Sales Tax Act (hereinafter referred to as the Act) against the petitioner. Admittedly the petitioner was granted an exemption certificate under rule 19 of the rules framed under the Act in respect of foodgrains. The Assistant Commissioner, Sales Tax, U.P., cancelled the exemption certificate on 23rd of March, 1962. His order reads :- "Whereas I am satisfied that M/s. Din Dayal Kesho Lal for the year 1957-58 have contravened the provisions of rules 20B(a) 20B(c) and 20B (i) Chapter V, of the U.P. Sales Tax Rules, 1948, I, P. N. Zutshi, Assistant Commissioner, Sales tax, Kanpur Range, Kanpur, in exercise of the power vested in me under rule 25(a) of the abovesaid rules, hereby cancel the exemption certificate issued to the abovenamed dealers in pursuance of the exemption order passed by Dr. A. K. Misra, the then Sales Tax Officer II, Kanpur, on 10th December, 2958, for the assessment year 1957-58. Sd.00 P. N. Zutshi. Assistant Commissioner, Sales Tax."
(3.) ADMITTEDLY the certificate was cancelled without affording any opportunity to the petitioner of showing cause or of being heard. The assessment proceedings under section 21 of the Act also admittedly did take place after the exemption certificate has been cancelled. It has been contended by Sarvasri S. N. Misra and Swami Dayal, the learned counsel for the petitioner, that the assessment under section 21 of the Act is invalid because the cancellation of the certificate itself was illegal. Rule 19 deals with the grant of exemption certificate and, so far as relevant for our purposes, reads : "19. Application for certificate of exemption. - (a) Every dealer liable to pay any fee in accordance with a notification issued under section 4 shall deposit in treasury along with chalans the fee calculated on his turnover of the previous year in respect of the goods specified in notifications. (b) ............................ (c) If the Sales Tax Officer, after such enquiry as he may deem necessary, is satisfied that the information given in such statement is correct, and the fee has been correctly deposited, he shall issue an exemption certificate to the dealer. (d) If the Sales Tax Officer finds that the fee deposited is less than that payable in accordance with the notification, he shall require the dealer to deposit the balance within a time to be fixed by him. (e) If the Sales tax officer finds that the fee deposited by the dealer exceeds the amount payable, he shall order the excess to be refunded." A careful study of this provision reveals that in case the Sales Tax Officer is satisfied after making such enquiry as he deems necessary that the information given in the statement by the dealer is correct and that he (dealer) has deposited the correct fee, he shall have no option but to grant an exemption certificate. The use of the words specially the words "shall issue" clearly show that the Sales Tax Officer has no discretion in the matter and is bound to grant an exemption certificate.;