Due notice before CST registration cancellation requires prescribed service, including notice at the known address before affixture.

Cancellation of CST registration is invalid unless due notice is served in the manner prescribed by the applicable service rules. Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959 applies to proceedings under the Central Sales Tax Act, 1956 and requires service on the dealer, or service at the known residential address before resorting to affixture if the dealer cannot be served at the business premises. Where this sequence is not followed, the dealer does not receive the notice required before adverse action, and the cancellation is liable to be quashed.

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Issues: Whether the cancellation of CST registration was invalid for want of due notice, where service was attempted by affixture without first serving notice at the dealer's residential address as contemplated by the rules.

Analysis: Rule 52 of the Tamil Nadu General Sales Tax Rules, 1959 governs service of notice and applies equally to proceedings under the Central Sales Tax Act, 1956. The rule contemplates service on the dealer and, where the dealer cannot be served at the business premises, notice must be sent to the known address before resorting to affixture. Section 7(4)(b) of the Central Sales Tax Act, 1956 permits cancellation of registration only after due notice to the dealer. Since the prescribed mode of service was not followed, the dealer did not receive due notice before cancellation.

Conclusion: The cancellation order was vitiated for breach of the requirement of due notice and was liable to be quashed in favour of the petitioner.

Ratio Decidendi: Cancellation of registration under the Central Sales Tax Act, 1956 is invalid unless notice is served in the manner prescribed by the applicable service rules and the dealer is afforded due notice before adverse action is taken.

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