(1) The prescribed authority may, after considering such information as may be furnished by the dealer under section 23 or as may be otherwise received by the said authority, amend the certificate of registration of the dealer in respect of whom the information has been furnished or received.

(2) When-

(a) any registered dealer discontinues or entirely transfers his business to other persons; or

(b) the liability of a registered dealer to pay tax under this Act has ceased;

the dealer shall, forthwith, surrender his certificate of registration in the manner prescribed to the prescribed authority and the said authority shall cancel the certificate of registration in the manner prescribed;

Provided that, in a case covered by clause (a), the certificate of registration shall be deemed to be inoperative with effect from the date of discontinuance or transfer of the business and, in a case covered by clause (b), with effect from the date on which the dealer's liability to pay tax has ceased.

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the certificate of registration granted to a dealer who, during any period of twelve consecutive months, has neither deposited any sum by way of tax nor furnished any return required by the Act, may be cancelled by the prescribed authority in the manner prescribed.

(4) The cancellation of the certificate of registration under sub-section (3) shall be without prejudice to any action which is, or may be taken, under section 24, or section 27 or section 31 or section 81.