Wrongful input tax credit claim does not justify registration cancellation where the statute provides reversal as the remedy.

Wrongful claim of input tax credit, by itself, is not a sufficient basis for cancellation of a dealer's registration under the U.P. Value Added Tax Act. The Act treats inadmissible input tax credit through its own mechanism of reversal and consequential interest, while cancellation is confined to specified statutory grounds; the phrase "any other sufficient cause" must be read ejusdem generis with those grounds. A mere incorrect credit claim therefore attracts reversal, not cancellation of registration.

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Issues: Whether a wrongful claim of input tax credit, by itself, constitutes sufficient cause for cancellation of a dealer's registration under the U.P. Value Added Tax Act.

Analysis: Input tax credit is governed by the provisions dealing with its grant and reversal. Where credit is wrongly claimed, the Act provides for reversal of the inadmissible credit and consequential interest. Cancellation of registration is separately governed by the provisions authorising cancellation for specified causes, and the expression "any other sufficient cause" must be read ejusdem generis with the preceding grounds. A mere incorrect claim of input tax credit does not fall within those grounds and cannot be used as an additional penal consequence when the statute already provides the specific remedy of reversal.

Conclusion: Wrongful claim of input tax credit, by itself, is not a sufficient cause for cancellation of registration.

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