Case Law Details

Case Name : B. Saravanan (Contractor) Vs. Commercial Tax Officer [(2015) 53 91 (Madras)]
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Registration Certificate of dealers cannot be cancelled without providing sufficient reasons & opportunity of being heard

In the instant case, B. Saravanan (Contractor) [the Petitioner] was a registered dealer under provisions of the Tamil Nadu Value Added Tax Act, 2006 (the Tamil Nadu VAT Act). The Department passed an Order cancelling the Petitioner’s Registration Certificate with retrospective effect (the Impugned Order). Being aggrieved, the Petitioner filled a Writ Petition before the Hon’ble High Court of Madras on the ground that the Impugned Order is in violation of principles of natural justice and against Section 39(14) of the Tamil Nadu VAT Act which deals with the procedure of Registration.

It was held by the Hon’ble High Court of Madras that a fair perusal of the Impugned Order would show that the Department has not assigned any sufficient reason for cancellation of the Petitioner’s Registration Certificate.

Further, no opportunity of being heard was provided to the Petitioner as required in terms of Section 39(15) of the Tamil Nadu VAT Act. Therefore, the Hon’ble High Court of Madras allowed the Writ Petition filed by the Petitioner by setting aside the Impugned Order and restoring the Registration Certificate.

(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email:

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