Cancellation of registration
d. chandra sekhar
(Querist) 10 January 2013
This query is : Resolved
The DCTO, Pondicherry Sales Tax Department has issued a notice to one of my clients for cancellation of registration if the dealers has not provided the additional security deposit within 15 days from the date of receipt of the notice U\s 9 read with Rule 11 of PVAT Act for not maintaining sufficient bank balance for tax payments.
sir any one help how to give reply and is there any judgments on this point.
Raj Kumar Makkad
(Expert) 10 January 2013
The reply depends upon the real facts of your client leading to such situation and his further undertaking to follow the departmental guidelines so obtain that information and do draft sequence-wise.
So far the relevant judgment is concerned, do search it on google as no such citations are provided here.
R K JAIN
(Expert) 12 January 2013
In the case of default of payment only the Taxing Authority can ask for additional security. Maintaining Sufficient bank balance for tax payments can not be the reason for asking additional security.
