Natural justice and statutory procedure govern cancellation of dealer registration; retrospective cancellation was set aside and remanded.

Cancellation of a dealer's registration under the Tamil Nadu Value Added Tax Act, 2006 cannot be sustained where it is made without prior notice, without a personal hearing, and without compliance with the procedural safeguards in sections 39(14) and 39(15). The text notes that retrospective cancellation also offended the principles of natural justice, and the revisional authority failed to scrutinise these statutory requirements. The impugned orders were set aside, the matter was remanded for fresh consideration after due opportunity to the dealer, and registration was directed to be restored in the interim.

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Issues: Whether the cancellation of the dealer's registration could be sustained when it was made without notice, without affording an opportunity of hearing, and without compliance with the statutory procedure under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The cancellation order was passed without invoking and complying with the procedural safeguards under sections 39(14) and 39(15) of the Tamil Nadu Value Added Tax Act, 2006. The order also suffered from non-observance of the principles of natural justice, as no prior notice or personal hearing was afforded before cancelling the registration with retrospective effect. The revisional authority likewise failed to examine the statutory requirements and sustained the defective cancellation.

Conclusion: The impugned orders were set aside and the matter was remanded for fresh consideration after granting due opportunity to the petitioner. The registration was directed to be restored in the meanwhile.

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