Cancellation of registration requires personal hearing; a show-cause notice alone does not satisfy the statutory requirement.

The authority granting registration under the Tamil Nadu Value Added Tax Act, 2006 may cancel, modify or amend a registration certificate for good and sufficient reasons under section 39(14). However, where section 39(15) requires an opportunity of being heard before cancellation, that safeguard means a personal hearing and is not met by a show-cause notice alone. Because only notice was issued and no personal hearing was afforded, the cancellation procedure was not compliant. The cancellation order was set aside and the matter was remitted for fresh consideration after permitting the dealer to file returns and complete the statutory procedure.

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Issues: (i) whether the authority under the Tamil Nadu Value Added Tax Act, 2006 had power to cancel a registration certificate for good and sufficient reasons; (ii) whether issuance of a show-cause notice satisfied the requirement of an opportunity of being heard before cancellation of registration.

Issue (i): Whether the authority under the Tamil Nadu Value Added Tax Act, 2006 had power to cancel a registration certificate for good and sufficient reasons.

Analysis: Section 39(14) empowers the authority granting registration to cancel, modify or amend a certificate of registration for good and sufficient reasons. The power to issue the registration certificate thus carries with it the statutory power to cancel it when the statutory conditions are satisfied.

Conclusion: Yes. The authority had power to cancel the registration certificate under section 39(14).

Issue (ii): Whether issuance of a show-cause notice satisfied the requirement of an opportunity of being heard before cancellation of registration.

Analysis: Section 39(15) contemplates an opportunity of being heard, which means a personal hearing. A show-cause notice is distinct from a personal hearing and does not by itself satisfy the mandatory requirement. Since only notice was issued and no personal hearing was afforded, the statutory procedure was not complied with.

Conclusion: No. A show-cause notice did not amount to the opportunity of being heard required by section 39(15).

Final Conclusion: The cancellation order was set aside for want of compliance with the hearing requirement and the matter was sent back for fresh consideration after permitting the dealer to file returns and comply with the procedure.

Ratio Decidendi: Where the statute requires an opportunity of being heard before cancellation of registration, that requirement means a personal hearing and is not satisfied merely by issuing a show-cause notice.

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