22. Cancellation of certificate of registration of a dealer voluntarily registered

(1) When any dealer registered under section 27 desires to apply for cancellation of the certificate of registration, he shall send his application to the appropriate assessing authority not less than six months before the end of a year together with-

(i) a statement of his gross turnover of sales during immediately preceding three years ; and

(ii) a declaration, whether or not -

(a) he manufactures or produces any goods for sale, or

(b) he imports for sale any goods from any place outside the State.

(2) If the appropriate assessing authority is satisfied that the dealer registered under section 27 is not liable to pay tax under section 9, section 10, section 12, or section 15, he shall, on application made by such dealer under sub-rule (1), cancel the registration with effect from the first day of the year following the year referred to in that sub-rule :

Provided that where the appropriate assessing authority does not cancel the certificate of registration on or before the last day of the year during which the application for cancellation of the certificate is made, such certificate shall stand cancelled with effect from the 1st day of the following year.