| 22 Cancellation of registration | |
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22 Cancellation of registration
(1) Where –
(a) a registered dealer who is required to furnish security under the provisions of this Act
has failed to furnish or maintain such security;
(b) a registered dealer has ceased to carry on any activity which would entitle him to be
registered as a dealer under this Act;
(c) an incorporated body is closed down or otherwise ceases to exist;
(d) the owner of a proprietorship business dies leaving no successor to carry on the
business;
(e) in the case of a firm or association of persons, it is dissolved;
(f) registered dealer has ceased to be liable to pay tax under this Act;
(g) a registered dealer knowingly furnishes a return which is misleading or deceptive in a
material particular;
(h) a registered dealer has committed one or more offences or contravened the provisions
of this Act and the offence or contravention is, in the opinion of the Commissioner, of such
magnitude that it is necessary to do so; or
(i) the Commissioner, after conducting proper inquiries, is of the view that it is necessary
to do so; the Commissioner may, after service of a notice in the prescribed form and after
providing the dealer an opportunity of being heard, cancel the registration of the dealer with effect from the date specified by him in the notice.
(2) Where –
(a) a registered dealer has ceased to carry on any activity which would entitle him to be
registered as a dealer under this Act;
(b) an incorporated body is closed down or otherwise ceases to exist;
(c) the owner of a proprietorship business dies leaving no successor to carry on business;
(d) in the case of a firm or association of persons, it is dissolved; or
(e) a registered dealer has ceased to be liable to pay tax under this Act; the registered dealer or the dealer’s legal representative in case of clause (c) above, shall apply for cancellation of his registration to the Commissioner in the manner and within the time prescribed.
Explanation.- For the purpose of this sub-section “legal representative” has the meaning assigned to it in clause (11) of section 2 of the code of Civil Procedure, 1908 (5 of 1908).
(3) On receipt of such application, if the Commissioner is satisfied that the dealer has ceased to be entitled to be registered, he may cancel the registration.
(4) If a registered dealer ceases to be registered, the Commissioner shall cancel the dealer’s registration with effect from a specified date.
(5) If a dealer’s registration which has been cancelled under this section is reinstated as a
result of an appeal or other proceeding under this Act, the registration of the dealer shall be
restored and he shall be liable to pay tax as if his registration had never been cancelled.
(6) If any registered dealer whose registration has been restored under sub-section (5) of this Act satisfies the Commissioner that excess tax has been paid by him during the period his registration was inoperative which but for the cancellation of his registration he would not have paid, then the amount of such tax shall be adjusted or refunded in such manner as may be prescribed.
(7) Every registered dealer who applies for cancellation of his registration shall surrender
with his application the certificate of registration granted to him and every registered dealer
whose registration is cancelled otherwise than on the basis of his application shall surrender the certificate of registration within seven days of the date of communication to him of the
cancellation.
(8) The Commissioner shall, at intervals not exceeding three months, publish in the official
Gazette such particulars as may be prescribed, of registered dealers whose registration has been cancelled.
(9) The cancellation of registration shall not affect the liability of any person to pay tax due
for any period and unpaid as on the date of such cancellation or which is assessed thereafter notwithstanding that he is not otherwise liable to pay tax under this Act.
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