(1) The certificate of registration shall be deemed to have been cancelled,-

(i) in case of clauses (i) and (ii) of sub-section (9) of section 5, with effect from the date of discontinuance or transfer of the business, as the case may be; or

(ii) in case of clauses (iii), (iv), (v) of sub-section (9) of section 5, with effect from the date on which the liability of the dealer to pay tax has ceased, notwithstanding the fact that the certificate of registration is cancelled from a later date. (2) The certificate of registration shall be cancelled, in case of clauses (vi) and (vii) of sub-section (9) of section 5, with effect from the date to be specified in the order of cancellation.

(3) If a registered dealer fails to make payment of security or additional security, as the case may be, in terms of the demand notice issued under sub-rule (1) or sub-rule (2) of rule 9, the registering authority, after giving the dealer a reasonable opportunity of being heard, may refuse grant of registration or, as the case may be, order cancellation of registration with effect from a date to be specified in that order.