Give or Create a EASY EXIT SCHEME for the Current/Past/ Closed Business entrepreneur ( proprietor/Partner) who has mistakenly defaulted with Vat Dept.
These people have experience in business and Market, Just due to one mistake ( default) on Vat, They are forced to close business or they are imposed with heavy penalty.
Try to give them another chance to prove themselves.
It will certainly add on the lost revenue of VAT ( Govt) and encourage people who have lost hope.
Govt and honorable Prime Minister has initiated Start Ups as an fresh opportunity for young India They they must consider the old and closed ventures too.