2012 (2) TMI 449 - HC - VAT and Sales Tax

Summary

Issues Involved:
The cancellation of sales tax registrations under the Tamil Nadu Value Added Tax Act, 2006 without providing an opportunity of personal hearing to the petitioners and the retrospective cancellation of registrations.

Summary:
The main contention raised by the petitioners was that their sales tax registrations were cancelled without a personal hearing, which goes against the provisions of clause (15) of section 39 of the Tamil Nadu Value Added Tax Act, 2006. They also argued that the cancellations cannot be done retrospectively. On the other hand, the respondent claimed that the petitioners were not maintaining proper accounts and had not filed monthly returns as required by the law.

Upon reviewing the arguments and records, the court found that the registrations were indeed cancelled without giving the petitioners a chance for a personal hearing, as mandated by the law. Additionally, the respondent failed to demonstrate the authority to cancel registrations retrospectively. Consequently, the court set aside the impugned orders. However, the respondent was given the opportunity to serve notices on the petitioners, allowing them to show cause as to why their registrations should not be cancelled. The petitioners were directed to submit objections and relevant documents, following which the respondent would make a decision after a personal hearing.

In conclusion, the writ petitions were disposed of with no costs, and the connected miscellaneous petitions were closed.