Natural justice bars cancellation of dealer registration without proper notice, hearing, and lawful initiation of proceedings.

Cancellation of a dealer's registration under the West Bengal VAT Act could not be sustained where no proper cancellation proceeding had been initiated and no notice or hearing had been afforded. A notice under section 66 only called for production of books of account and did not authorise cancellation, especially when the registration was cancelled before the compliance date. Enquiry reports and postal endorsements suggesting non-functioning at the declared address could not substitute for lawful initiation of proceedings or due service, including attempt at the residential address or by the prescribed process-server mode. The cancellation order was invalid for breach of natural justice and was set aside.

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Issues: Whether cancellation of the dealer's registration certificate under the West Bengal Value Added Tax Act, 2003 could stand when no proceeding for cancellation had been initiated and no notice or opportunity of hearing had been given.

Analysis: The record disclosed that no notice commencing a cancellation proceeding had been issued, and the only notice shown was one under section 66 of the Act calling for production of books of account. Registration was cancelled before the date fixed for compliance with that notice. The enquiry reports and postal endorsements may have indicated that the dealer was not functioning from the declared address, but those materials could not lawfully be acted upon to cancel registration without first initiating a proper proceeding. Where the notices returned unserved, service ought to have been attempted at the residential address recorded in the registration certificate or through the prescribed process-server mode. The dealer was entitled to contest the enquiry reports and explain its business location before any adverse order was passed.

Conclusion: The cancellation order was invalid for breach of natural justice and was set aside.

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