Retrospective cancellation of VAT registration left open for fresh notice and proceedings under the Act

Retrospective cancellation of a registration certificate under the Tamil Nadu Value Added Tax Act, 2006 was not interfered with in the writ proceedings, and the Department was left free to proceed under the Act. The writ court had quashed the cancellation order while granting liberty to issue notice at the correct address and take action under Section 39(14) in accordance with law. The appellate court found no sufficient ground to disturb that approach, particularly since the Revenue had earlier accepted that the issue was covered by an earlier decision and the appeal had remained pending for a long period without admission or interim relief.

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Issues: Whether the retrospective cancellation of the respondent's registration certificate under the Tamil Nadu Value Added Tax Act, 2006 called for interference, and whether the Department could still proceed under Section 39(14) of the Act.

Analysis: The cancellation order was quashed by the writ court, which had granted liberty to the Department to invoke Section 39(14) and proceed in accordance with law. The appellate court found no sufficient ground to interfere with that view, especially when the Revenue itself had accepted before the writ court that the issue was covered by an earlier decision. The court also noted that the appeal had remained pending for a long time without admission or interim relief, and no useful purpose would be served by keeping it pending further.

Conclusion: The retrospective cancellation was not interfered with, and the Department was permitted to issue notice to the respondent at the correct address and proceed under Section 39(14) of the Act in accordance with law.

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