By C. B. Thakar Advocate G. G. Goyal, Janak Vaghani Chartered Accountants
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VAT- Cancellation Of Registration Certificate- No Power to Cancel From Retrospective Effect- section 39(15) of The Tamil Nadu Value Added Tax Act, 2006
Facts The sales tax registrations of the petitioners, under the Tamil Nadu Value Added Tax Act, 2006, had been cancelled retrospectively by the impugned orders of the respondent, dated June 29, 2010, without giving an opportunity of personal hearing to the petitioners, contrary to clause (15) of section 39 of the Tamil Nadu Value Added Tax Act, 2006. The Dealers filed a writ petition before the Madras High Court against the impugned order.
Held
In view of the averments made on behalf of the petitioners as well as the respondent, and on a perusal of the records available, that the registrations of the petitioners had been cancelled by the impugned orders of the respondent, without giving an opportunity of personal hearing to the petitioners, as provided under clause (15) of section 39 of the Tamil Nadu Value Added Tax Act, 2006. Further, nothing has been shown on behalf of the respondent to substantiate the claim that the respondent has the authority or power to cancel the registration, retrospectively. In such circumstances, the impugned orders of the respondent were set aside by the Court. The High Court issued direction that it would be open to the respondent to serve notices on the petitioners, at the addresses furnished by the petitioners in their writ petitions, asking the petitioners to show cause as to why the registrations of the petitioners should not be cancelled. On receipt of such notices, the petitioners shall file its objections, if any, along with the relevant documents. On receipt of such objections, the respondent shall consider the same and pass appropriate orders thereon, on merits and in accordance with law, after giving an opportunity of personal hearing to the petitioners. Accordingly, the writ petitions were disposed.
