VAT registration cancellation requires final findings; pending appeal and unresolved survey material were insufficient grounds.

Cancellation of VAT registration cannot be sustained merely on the basis of an assessment order that has not attained finality and pending survey-related proceedings. The assessment was under appeal before the Tribunal, so the alleged suppression of turnover was still open to factual and legal scrutiny. The survey proceedings were also unresolved, and no finding had been recorded that the seized loose papers proved suppressed turnover. On these facts, the grounds relied upon were insufficient to justify cancellation of registration, and the cancellation was set aside.

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Issues: Whether the cancellation of VAT registration was justified on the basis of an assessment order under appeal and unfinalised proceedings of the Special Investigation Branch.

Analysis: The registration was cancelled on two grounds: alleged suppression of turnover in the assessment year 2009-10 and seizure of loose papers during a later survey. The assessment order had not attained finality because the appeal was pending before the Tribunal, which could examine questions of fact and law. The proceedings arising from the survey were also still pending, and no finding had been returned that the seized papers established suppressed turnover. On these facts, the grounds relied upon were not sufficient to support cancellation of registration.

Conclusion: The cancellation of registration was unsustainable and was rightly set aside.

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