(1) If any dealer registered under this Act-

(a) sells or disposes of his business or any part thereof or discontinues his business, or changes the name, style, or nature of business, or makes any addition or deletion in the class of goods dealt in or manufactured, or changes his place of business (other than principal place of business) or warehouse, or opens a new place of business; or

(b) effects any other change in the constitution or principal place of business,

(c) changes the ownership of the business, or its basic status,

he or any person, duly authorised by him shall, within the prescribed time, inform the registering authority accordingly".

(2) If under circumstances mentioned in sub-section (1) a registered dealer makes an application for amendment of the certificate of registration, -

(a) in cases of clause (a), such amendment shall be done electronically on the basis of the application,

(b) in cases of change in constitution or principal place of business, the registering authority may, amend the certificate of registration of the dealer or reject the application for such amendment as the case may be; and

(c) in cases of change in the ownership of the business or Its basic status, the registering authority may, issue fresh certificate of registration or reject the application for such amendment as the case may be:

Provided that before an application for amendment of certificate of registration is rejected, the dealer shall be given an opportunity of being heard.

(3) Notwithstanding anything contained in sub-section (2), where the registering authority is satisfied on his own information that the certificate of registration issued to a dealer requires amendment with regard to certain particulars specified therein, he may amend the said certificate after giving the dealer an opportunity of being heard.

(4) Where no order either granting or rejecting the application for amendment of the registration certificate is passed within ninty days from the date of receipt of such application, it shall be deemed that the amendment as applied for has been granted and the certificate of registration shall accordingly be amended :

Provided that if the delay in disposal of the application for amendment of the certificate of registration is attributable to the lapse on the part of the dealer, the limitation as provided under this sub-section shall not apply.

(5) When a certificate of registration is amended under sub-section (3) on any of the events specified in sub-section (1), such amendment shall take effect from the date of such event and in any other case of amendment coming under sub-section (2), the amendment shall take effect from the date of application.

(6) Notwithstanding anything contained in sub-section (1), where any change alters the basic status of a dealer, such as, conversion of proprietorship concern to partnership firm or vice-versa, dissolution of an existing firm and creation of a new firm, formation of a firm into a company or vice versa, a new certificate of registration shall be issued on application being filed in this behalf in the manner prescribed.

(7) Where a dealer fails, without any reasonable cause, to inform the registering authority the changes as provided under sub-section (1), within the time prescribed, he shall be liable to a penalty of rupees one hundred for each day of default subject to a maximum limit of rupees ten thousand.