Natural justice requires hearing before cancellation of registration; ex parte cancellation was unsustainable and had to be set aside.

Cancellation of registration under section 8-A(1-B) could not be sustained where it was made without notice or a reasonable opportunity of hearing, because the order entailed civil consequences and had to comply with natural justice. The dealer was therefore entitled to be heard before any cancellation was finalised. Since the Trade Tax Officer proceeded without notice, the cancellation order should have been set aside and the issue of cancellation decided afresh after hearing the dealer. The first appellate authority's remand was justified, but the order required modification to reflect that the cancellation itself could not stand.

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Issues: Whether the cancellation of registration under section 8-A(1-B) could be sustained when it was made without issuing notice or affording a reasonable opportunity of hearing, and whether the order of remand required modification.

Analysis: The revisionist's registration had been cancelled after a survey on the footing that no business was being conducted from the premises. Although section 8-A(1-B) did not expressly provide for notice, the order affected civil consequences and could not be passed without complying with the principles of natural justice. A dealer was entitled to a reasonable opportunity of being heard before cancellation of registration. Since the Trade Tax Officer acted without notice, the first appellate authority was right in remanding the matter, but the cancellation order itself ought to have been set aside so that the question of cancellation could be decided afresh after hearing the dealer.

Conclusion: The cancellation order could not be sustained without hearing the dealer, and the Tribunal's order required modification to that extent.

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