Commissioner may refuse Authorization etc

The Commissioner may, after giving reasonable opportunity of being heard, refuse to grant Authorization, Recognition or, as the case may be, Permit to a dealer under any of the following circumstances, that is to say,—

1. (a) if any Authorization, Recognition or, as the case may be, a Permit previously granted under this Act to such dealer has been cancelled in the circumstances other than those referred to in sub-section (1) of section 39;
2. (b) during any period of suspension of the dealer’s Authorization, Recognition or, as the case may be, Permit;
3. (c) if the dealer—
   • (i) has failed to pay any tax (including any interest and penalty) due from him by or under any provision of this Act, or any earlier law; or
   • (ii) has failed, without sufficient cause, to furnish any returns required to be furnished by or under the provisions of this Act (other than the provisions of section 73), or any earlier law; or
   • (iii) is an undischarged insolvent, or
   • (iv) has been convicted of an offence under this Act or any earlier law;
4. (d) if a dealer is a firm, and any partner thereof is a person—
   • (i) whose Authorization, Recognition or Permit, as the case may be, has been cancelled in the circumstances referred to in clause (a), or
   • (ii) to whom an Authorization, Recognition or Permit, as the case may be, was previously refused in the circumstances referred to in clause (c);
5. (e) if the Commissioner has reason to believe that the grant of such Authorization, Recognition or Permit, as the case may be, to a dealer under this Act is likely to be prejudicial to the interest of the revenue.