(1) Where -

(a) any business in respect of which a certificate of registration has been granted to a dealer under this Act is discontinued ; or

(b) in the case of transfer of business by a dealer, the transferee already holds a certificate of registration under this Act ; or

(c) an incorporated body is closed down or otherwise ceases to exist ; or

(d) the owner of a proprietorship business dies; or

(e) in case of a firm or association of persons, if it is dissolved ; or

(f) a dealer has ceased to be liable to pay tax under this Act,

(g) any change alters the basic status of a dealer as referred to in sub-section (6) of section 32,

(h) there is good and sufficient reasons,

the registering authority may, by order, cancel the certificate of registration of such dealer or the transferor dealer, as the case may be, from such date as may be specified in thatorder.

(2) The certificate of registration shall be deemed to be inoperative -

(a) in case of clause (a) and clause (b) of sub-section (1), with effect from the date of discontinuance or transfer of the business, as the case may be;

(b) in case of clauses (c), (d), (e) and (f) of sub-section (1), from the date on which the liability of the dealer to pay tax has ceased,

(c) in case of clause (g) of sub-section (1), from the date on which the basic status of a dealer is changed,

(d) in case of clause (h) of sub-section (1), from the date of order of cancellation,

notwithstanding the fact that the certificate of registration is cancelled from a later date.

(3) A registered dealer, whose certificate of registration becomes liable for cancellation under clauses (a), (b), (c), (e), (f) and (g) of sub-section (1), shall apply for cancellation of the registration to the registering authority in such manner and within such time as may be prescribed.

(3-a) A registered dealer, whose certificate of registration becomes liable for cancellation under clause (h) of sub-section (1), the registering authority shall, after causing such inquiry as he may consider necessary and after giving an opportunity of being heard to the dealer, cancel the certificate of registration held by him.

(4) On receipt of such application, if the registering authority is satisfied that the certificate of registration of the dealer is liable to be cancelled under sub-section (1), he may cancel such certificate .

(5) Omitted w.e.f 01-10-2015.

(6) Every dealer whose certificate of registration is cancelled under this section shall pay in respect of every taxable goods held as stock in trade or as capital goods on the date of cancellation, an amount equal to the tax that would have been payable in respect of those goods if the goods were sold at prevailing market price on that date or the total input tax credit previously claimed in respect of those goods, whichever is higher.

(7) Every dealer who applies for cancellation of his registration shall surrender with his application the certificate of registration granted to him alongwith the unused way bills held on the date of such application and the account of utilisation of such way bills, if any, for which no account has been rendered.

(8) Every dealer whose certificate of registration is cancelled otherwise than on application shall surrender the certificate of registration alongwith the unused way bills, if any, held on the date of such cancellation, the account of utilisation of such way bills and the statutory declaration forms, if any, for which no account has been rendered, within seven days from the date of receipt, by him, of the order of cancellation.

(9) If a dealer -

(a) fails, without sufficient cause, to comply with the provisions of subsection(3) or sub-section (6); or

(b) fails to surrender his certificate of registration as required under subsection (7); or

(c) fails to surrender his registration certificate alongwith unused way bills and the statutory declaration forms and the account of utilisation of such way bills and declaration forms, for which no account has been rendered under sub-section (8),

the registering authority may, by an order in writing and after giving the dealer an opportunity of being heard, direct that the dealer shall pay, by way of penalty, a sum equal to rupees one hundred for each day of default subject to a maximum of rupees ten thousand.

(10) The registering authority shall, at intervals of one month, publish in the Commercial Tax Gazette such particulars, as may be prescribed, in respect of every dealer whose certificate of registration has been cancelled under the provisions of thisAct during the intervening period.

(11) The cancellation of a certificate of registration shall not affect the liability of any dealer to pay tax for any period till the date of such cancellation which remains unpaid or is assessed after the said date, notwithstanding that he is not liable to pay tax under this Act.