Retrospective cancellation of VAT registration requires notice, hearing, and valid reasons; absence of these safeguards invalidates the order.

Retrospective cancellation of a dealer's registration under the Tamil Nadu Value Added Tax Act, 2006 was unsustainable where the authority did not establish power to cancel with retrospective effect and did not show that the dealer was given a proper personal hearing. Cancellation of a registration certificate under section 39 must be supported by good and sufficient reasons and the affected dealer must be heard before adverse action is taken. On the record, those requirements were not met, so the cancellation order could not stand and was set aside in favour of the assessee.

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Issues: Whether the retrospective cancellation of the dealer's registration under the Tamil Nadu Value Added Tax Act, 2006, without affording a personal hearing, could be sustained.

Analysis: The cancellation of a registration certificate under section 39 of the Tamil Nadu Value Added Tax Act, 2006, is required to be supported by good and sufficient reasons, and the dealer must be given an opportunity of being heard before adverse action is taken. The record did not establish that the authority had power to cancel the registration with retrospective effect, nor did it satisfactorily show that a proper personal hearing was granted. In these circumstances, the impugned cancellation order could not stand.

Conclusion: The retrospective cancellation was unsustainable and was set aside in favour of the assessee.

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