(1) Where a VAT dealer ceases to carry on his business, the dealer or his legal representative shall apply before the Registering Authority for cancellation of registration within thirty days of the closure of business.

(2) Subject to sub-rule (3), a VAT dealer may apply in writing in Form JCCF (Jharkhand Common Cancellation Form) to have his VAT registration cancelled if,

(a) With respect to the preceeding period of three consecutive years, the taxable turnover did not exceed specified quantum as specified in sub-section (5) of Section 8 of the Act.

(3) In the case of a VAT dealer making taxable sales, and who is registered under sub-section (3) of Section 25 of the Act, an application under sub-rule (2) of this rule shall only be made, after the expiry of twenty-four months from the date of registration.

(4) Every VAT dealer whose registration is cancelled under this rule shall pay back input tax credit availed in respect of all taxable goods on hand on the date of cancellation. In the case of capital goods on hand on which input tax credit has been received, the input tax to be paid back, which shall be based on the book value, of such taxable goods and capital goods on that date.

(5) In respect of transfer of a business to another VAT dealer, there shall be no requirement to repay the input tax credit availed on capital goods and other goods, which shall be deemed to have been transferred to such another VAT Dealer.

(6) The Registering Authority may cancel the registration of a VAT dealer who has applied for cancellation under sub-rule (1) or sub-rule (2) or sub-rule (10) of this rule if it is satisfied that there are valid reasons for such cancellation of registration. The cancellation shall be intimated in Form JVAT 111.

(7) The authority prescribed may cancel the registration of a VAT dealer who has not applied for cancellation of registration if the authority prescribed is satisfied that the dealer is not entitled for registration under Section 25 or Section 26 of the Act or found to be not complying with the provisions of the Act.

(8) The Registering Authority shall intimate a VAT dealer when refusing to cancel the registration of the dealer under this rule within thirty days of receipt of Form JCCF.

(9) The authority prescribed shall issue a notice in Form JVAT 112 to a VAT dealer before compulsory cancellation of the registration.

(10) The authority prescribed may cancel the registration of a VAT dealer registered under sub-section (5) of Section 25 of the Act, where the VAT dealer-

a. has not kept proper accounting records relating to any business activity carried on by him; or

b. has not submitted correct and complete tax returns; or

c. not complying the provisions of the Act and Rules.

d.The gross turnover of a registered dealer has failed to exceed the specified taxable quantum for three successive years.

(11) The cancellation of registration takes effect from the end of the tax period, in which the registration is cancelled unless the authority prescribed orders the cancellation to take effect from an earlier date.

(12) The cancellation of a registration of any VAT dealer does not affect any liability under the Act or any requirement to comply with the provisions of the Act and the Rules until the date of cancellation of registration.

(13) Wherever any order of refusal to cancel an application is made, the VAT dealer shall be given an opportunity of being heard and for this purpose the prescribed authority shall issue a notice in JVAT 302.

(14) Every VAT dealer, applying for cancellation in Form JCCF, shall surrender all the unused prescribed Forms, which have been authenticated by the prescribed authorities.