(a) A registered dealer, who discontinues his business or is no longer liable to assessment under the Act shall apply to the Assessing Authority for cancellation of registration within 60 days from the date of discontinuance of his business or from the date when his liability to assessment ceases. The application shall be accompanied by the following document:-

(i) Statement of turnover for the immediately preceding two years.

(ii) Statement showing particulars of goods imported or manufactured during the immediately preceding two years;

(iii) Statement of particulars of stocks in hand on the date of making application; and

(iv) An affidavit that the business has been discontinued or liability to assessment under the Act has ceased and indicating therein the date of discontinuance of business and the date on which liability to assessment ceased;

Provided that the statement specified in clauses (i) and (ii) need not accompany the application if these have been furnished earlier.

(b) The Assessing Authority, after making such enquiry as he may consider necessary through Inspector or otherwise and being satisfied that the particulars given in application and the accompanying documents are correct, shall cancel the certificate of registration with effect from the date on which the business was discontinued or liability to assessment ceased The format conveying order of cancellation to the dealer shall be as may be notified by the Commissioner.

(c) The Assessing Authority may cancel or amend the certificate of registration either on the application of the dealer or on his own motion where such authority is satisfied that the dealer to whom it was granted has ceased to carry on the business or has ceased to be liable to tax under the Act or an incorporated body is closed down or otherwise it ceases to exist, or the proprietor of the proprietorship business dies without leaving any successor to carry on business or in case of a firm or association of persons it is dissolved or a person or a dealer is registered by mistake or has committed any default under the Act or for any sufficient reason, provided that the certificate of registration shall not be cancelled or amended by such authority on his own motion without the dealer being given reasonable opportunity of being heard.

Provided further that the dealer who fails to apply for cancellation of registration shall be liable to pay a fine of Rs. 100/- unless the dealer proves that he had no mala fide intention for his failure to apply for cancellation thereof.

(d) The cancellation of registration shall not bar the Assessing Authority from recovering the tax, or any other sum payable by the dealer under the Act before the date of cancellation of registration or after such cancellation in consequence of making of an assessment/reassessment or from taking any other proceedings under any provision of the Act.