VAT registration cancellation requires prior notice and hearing; non-service of show-cause notice invalidated the cancellation.

VAT registration could be cancelled only for good and sufficient reason and after the dealer was given a reasonable opportunity of being heard under section 19(2) of the Andhra Pradesh Value Added Tax Act, 2005. Because the show-cause notice was not served before cancellation and no prior hearing was afforded, the mandatory statutory procedure was not complied with. The cancellation was therefore contrary to the Act and was quashed.

---

---

Issues: Whether the cancellation of VAT registration was valid when the dealer was not served with the show-cause notice and was not given an opportunity of being heard.

Analysis: Section 19(2) of the Andhra Pradesh Value Added Tax Act, 2005 permits cancellation, modification, or amendment of a certificate of registration only for good and sufficient reason and only after giving the dealer a reasonable opportunity of being heard. The record showed that the show-cause notice was not served before the registration was cancelled. In the absence of prior notice and hearing, the statutory requirement was not satisfied. The cancellation was therefore contrary to the mandatory procedure and could not be sustained.

Conclusion: The cancellation of VAT registration was invalid and was quashed in favour of the assessee.

---