Restoration of VAT registration upheld where return defaults were cured and no separate allegation beyond non-filing was made.

Registration certificates cancelled for non-filing of returns under the Gujarat VAT Act were directed to be restored after the dealer cured the default by filing the returns, paying tax with interest, and paying the penalty. The cancellation had rested only on that non-filing default, and no separate allegation such as tax evasion was shown. The appellate authority could not rely on grounds outside the cancellation order, and the Tribunal's view that restoration should follow was found to disclose no legal error. The Gujarat HC upheld the direction restoring the registrations and rejected the State's challenge.

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Issues: Whether the learned Tribunal erred in directing restoration of the dealer's registration certificates cancelled for non-filing of returns.

Analysis: The registration was cancelled under Section 27(5)(g) of the Gujarat Value Added Tax Act, 2003 for non-filing of returns for three consecutive periods. The default was subsequently made good by filing the returns, paying the tax with interest, and paying the penalty. The original cancellation was based only on that default, and no other adverse allegation such as evasion was shown. The first appellate authority declined restoration on grounds outside the basis of the cancellation order, which were not the subject matter of the proceedings. In these circumstances, the Tribunal's view that restoration should follow did not suffer from any legal error warranting interference.

Conclusion: The Tribunal's direction to restore the registrations was upheld and the challenge by the State failed.

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