Section 7(3) in Jammu and Kashmir Motor Spirit and Diesel Oil (Taxation of Sales) Act, 2005 (1948 A.D.)
(3)The grant or renewal of licence may be refused if any previous licence of the applicant has been cancelled or if the tax payable by him or the amount of penalty imposed, if any, is found due from him on the date of expiry of the licence or if the Petrol Taxation Officer is satisfied that the application has been made only for the purpose of enabling any person to carry on business as a 1[ ] dealer without a licence.
