VAT registration cancellation invalid without prior notice, personal hearing, and proof of non-filing under statutory safeguards.

Cancellation of VAT registration for alleged non-filing of monthly returns was found unsustainable where it was made retrospectively, without prior notice, and without a personal hearing required under section 39(15) of the Tamil Nadu Value Added Tax Act, 2006. The court also noted that the factual basis for cancellation was incorrect because the petitioner had produced e-returns for the relevant period. In the absence of compliance with these procedural safeguards, the cancellation was treated as illegal and restoration of registration followed.

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Issues: Whether cancellation of the petitioner's registration for alleged non-filing of monthly returns was lawful in the absence of prior notice, personal hearing, and in view of the statutory requirement under section 39(15) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The cancellation order was found unsustainable because it operated retrospectively, was passed without prior notice, and proceeded on a factual premise that the petitioner had not filed returns, despite production of e-returns for the relevant period. The statutory safeguard under section 39(15) required an opportunity of personal hearing before cancellation of registration. In the absence of compliance with these procedural protections, the cancellation was held to be illegal.

Conclusion: The cancellation of registration could not be sustained and the petitioner was entitled to restoration of registration.

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