VAT registration cannot be refused for lack of minimum floor space where the statutory procedure is otherwise satisfied.

Registration under the Tamil Nadu Value Added Tax Act, 2006 could not be refused merely because the business premises measured 80 sq. ft. The statutory scheme in Section 39 and Rule 5 requires filing in the prescribed form, payment of fee, scrutiny of the application, and issuance of registration where the application is in order; it does not prescribe any minimum floor area for business premises. The Revenue's circular was only a guideline for prior inspection in specified cases and could not create a new condition for registration. Where the proposed business was genuine and the prescribed procedure was complied with, rejection on the basis of premises size was unlawful.

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Issues: Whether rejection of the application for registration under the Tamil Nadu Value Added Tax Act, 2006 on the ground that the business premises measured only 80 sq. ft. was lawful.

Analysis: Section 39 of the Tamil Nadu Value Added Tax Act, 2006 and Rule 5 of the Tamil Nadu Value Added Tax Rules prescribe the procedure for registration, including filing in the prescribed form, payment of fee, acknowledgement, scrutiny of the application, and issuance of registration where the application is in order. The record showed compliance with the prescribed procedure, and there was no statutory provision fixing any minimum area for carrying on business. The circular relied on by the Revenue was only a guideline for prior inspection in specified cases and did not authorize rejection of registration on the basis of the size of the premises. In the absence of any dispute about the genuineness of the proposed business, the Revenue could not insist on a particular extent of space as a condition for registration.

Conclusion: The rejection of registration was unlawful and was set aside. The direction to issue registration certificate and process the application afresh was sustained.

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