(1) In the case of any registered dealer, where -

(i) the business has been discontinued, transferred as a whole or otherwise disposed of, or

(ii) the total turnover for two preceding consecutive years is less than rupees ten lakhs, or

(iii) any dealer registered under this Act has committed the offence of evasion of tax, or

(iv) the dealer dies,

the registering authority may, either of his own motion or on the application of the dealer, in the case of death on the application by his legal representative, in the prescribed manner, cancel the registration from such date, as he considers fit having regard to the circumstances of the case.

(1A) Notwithstanding anything contained in sub-section (1), the registering authority shall have power, for good and sufficient reasons, to cancel, modify or amend any registration certificate issued by it.

(2) The cancellation of the registration shall not affect the liability of the dealer to pay tax, any penalty and interest or other amount due for any period prior to the date of cancellation whether such tax, penalty and interest or other amount is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.

(3) On cancellation of registration, in any case, where the dealer has availed input tax credit, any taxable stock and capital goods held shall be deemed to have been sold and tax shall be payable on such goods at their fair market value, except where the business is transferred as going concern to another registered dealer and in accordance with the rules prescribed in this respect under this Act.

(4) A dealer shall, until his registration is cancelled, be liable to pay the registration fees specified in sub-section (2) of section 8 for every year subsequent to that in which he is registered.