(1)When any registration certificate is required to be cancelled under sub-section (8) of section 18 of the Act , the dealer shall apply to the Appropriate Assessing Authority within 30 days from the date of occurrence of the event necessitating cancellation.

Where:-

(i) a dealer has discontinued, transferred or otherwise disposed of his business, the Appropriate Assessing Authority on being satisfied about the correctness of the fact he shall order the cancellation of registration certificate with effect from the date of discontinuance or transfer or disposal of the said business, as the case may be.

(ii) (a) the turnover of sales of a registered dealer during any year has not exceeded the relevant limit specified under sub-section (4) of section 3 of the Act, he shall make an application for cancellation of registration certificate to the Appropriate Assessing Authority together with a statement of his turnover of sales of immediately preceding year within 30 days from the close of the year. The Appropriate Assessing Authority may either order the cancellation of registration certificate or specify further period not exceeding one year for continuation of the said registration certificate.

(b) The dealer whose further period has been specified by the Appropriate Assessing Authority under clause (a) and he is satisfied that the dealer is not liable to pay tax under section 3 of the Act, he shall order the cancellation of registration certificate with effect from the date of expiry of the further period specified under clause (a) and the liability of the dealer to pay tax under sub-section (4) of section 3 shall cease with effect from the said date.

(2) (a)The registration certificate issued under the Goa Sales Tax Act, 1964 (Act 4 of 1964), and held by the dealer on the day immediately preceding the appointed day and which is deemed to be a certificate of registration issued under the Act for the purposes of clause (b) of sub-section (1) of section 87 of the Act, shall be deemed to have been cancelled from the date of commencement of validity of the fresh registration certificate issued under the Act.

(b) The registration certificate issued under the Goa Sales Tax Act, 1964 (Act 4 of 1964), and held by the dealer on the day immediately preceding the appointed day and which is deemed to be a certificate of registration issued under the Act for the purposes of clause(b) of sub-section(1) of section 87 of the Act, shall be cancelled from the appointed day on application from the dealer for such cancellation .

(c) The certificate of registration issued or application received under sub-section(3) of section 18 of the Act, shall be deemed to have been cancelled from the date of expiry of its validity.

(3)(a) When the Appropriate Assessing Authority is satisfied at any time with any reason other than that referred to in sub-rule (1) and (2) above that, the certificate of registration of any dealer requires cancellation, he shall, for reasons to be recorded in writing, and after giving the dealer an opportunity of being heard, cancel the registration certificate with effect from such date as may be specified in the order and the liability of the dealer to pay tax shall cease with effect from the said date.

(b) (i) Every dealer whose registration is cancelled otherwise than on the basis of application, shall surrender the certificate of registration to the Appropriate Assessing Authority within seven days from the date of communication to him of the order of cancellation.

(ii) If the dealer fails to surrender his certificate of registration as provided in clause (i) above, the Appropriate Assessing Authority, may ,by an order in writing and after giving the dealer an opportunity of being heard, impose upon the dealer a penalty not exceeding Rs.25/- for every day of default.

(4) If cancellation of certificate of registration has been ordered as a result of closure of business or deemed to have been cancelled on expiry of its validity then the balance of input tax credit carried over as on the date of such cancellation shall not be eligible for refund.

(5) The order of cancellation of certificate of registration shall be entered in the register maintained in the office of the Appropriate Assessing Authority.

(6) The payment of penalty as stipulated in the proviso to sub-section (1) or (2) of section 55 shall be made by e-challan.