18. Cancellation of registration certificate under sub-section (10) of sec. 16-

(1) When a registration certificate issued to a dealer becomes liable for cancellation under clauses (a), (b) or (c) of sub-section (10) of section 16 the registering authority shall after making such enquiry as it thinks necessary, cancel the registration certificate of the dealer.

(2) A dealer may apply to the registering authority in form 12 for the cancellation of his registration certificate on any of the grounds mentioned in clauses (a), (b) or (c) of sub-section (10) of section 16. If the application is on the ground mentioned in clause (a) of sub-section (10) of section 16 he shall also tender along with the application the registration certificate together with certified copies thereof, if any. On the receipt of such application, the registering authority shall, if it is satisfied after making such enquiries as it deems necessary, that the application is correct, cancel the registration certificate.

(3) If in the opinion of the registering authority there are reasons for cancellation of the registration certificate of a dealer under clause (d) or clause (e) of sub-section (10) of section 16 it shall, after giving the dealer a reasonable opportunity of being heard, pass such order as it deems fit.

(4) The cancellation of the registration certificate under sub-rule (2) or sub-rule (3) shall take effect from -

(i) the date of discontinuance or transfer of business, if the case falls in clause (a) of sub-section (10) of section 16; and

(ii) the date of communication of order to the dealer if the case falls in clause (b), clause (c), clause (d) or clause (e) of sub-section (10) of section 16.

(5) Where an application has been made by the dealer under sub-rule (2) for the cancellation of his registration certificate on the ground mentioned in clause (b) or clause (c) of sub-section (10) of section 16 and no orders are passed and communicated to the dealer within a period of six months from the date of receipt of such application, it shall be deemed that his registration certificate is cancelled with effect from the date immediately following the date of expiry of a period of six months from the date of receipt of such application and thereupon such dealer shall send an intimation in form 13 to that effect to the registering authority.

(6) The list of registration certificates cancelled during a year shall be exhibited on the notice board of the office of the registering authority and be given wide publicity, in such manner as the commissioner may, by general order, direct.

(7) Where any person holding a registration certificate issued under section 18, makes an application for cancellation of registration certificate the registering authority, after making such enquiry as he deems necessary, shall cancel the registration certificate.