(1) Where a registered dealer-

(a) discontinues his business or transfers his business to a dealer, registered under the Act; or

(b) being an incorporated body ceases to exist; or

(c) Omitted; or

(d) being a firm or association of persons is dissolved; or

(e) ceases to be liable to pay tax under the Act,

he shall make an application electronically in Form VAT-202A and submit the hard copy duly signed by him or his authorized person together with the registration certificate issued for cancellation thereof to the registering authority, within a period of fourteen days from the date of occurrence of such event.

Explanation. - The expression "ceases to be liable to pay tax under the Act" as referred to in clause (e) shall be construed in accordance with the provisions of sub- section (2) of section 10.

(2) Where the registering authority, after conducting or causing to be conducted such enquires, as he deems necessary, is satisfied that the business has been discontinued or closed as a result of the occurrence of any of the events specified in sub-rule (1), he shall, by an order in writing, cancel the certificate of registration with effect from the date specified in that order.

(2-a) Where the registering authority, after conducting or causing to be conducted such enquiries, is satisfied that there exists any good and sufficient reason, he shall, by an order in writing, cancel the certificate of registration with effect from the date of that order, after giving the dealer an opportunity of being heard

(3) In the event of death of a dealer being the proprietor of the business registered under the Act, the legal heir shall, within fourteen days from the date of death, inform in writing, the registering authority, the date of his death and produce before such authority such evidence, as may be required, and the registering authority either on receipt of such application, or otherwise, cancel the certificate of registration immediately by an order in writing from the date specified in that order.

(4) In the event of any change altering the basic status of the dealer as enunciated in subsection (6) of section 32 , the dealer shall, within 15 days of such occurrence, inform in writing to the registering authority, the date of such change and produce before such authority, such evidence as may be required and the registering authority shall, on receipt of such intimation, or otherwise, cancel the certificate of registration immediately by an order in writing from the date specified in that order.

(5) Where the registration certificate of any dealer is cancelled under sub-rule (4) due to occurrence of a change altering the basic status of a dealer, the registering authority shall issue a new certificate of Registration on application filed by such dealer in the manner prescribed under rule-15.