29. Cancellation of Certificate of registration

(1)        A certificate of registration granted to a dealer under sub-section (2) or sub-section (2A) of section24, shall be cancelled by the appropriate authority where such authority, after giving a reasonable opportunity to such dealer of being heard, is satisfied that-

(a)        the dealer has ceased to carry on business or has ceased to exist at his place of business; or

(b)        the dealer has ceased to be liable to pay tax under sub-section (8) of section 10, section 11, sub-section (8) of section 14.  

(c) the dealer has obtained the certificate of registration on the basis of documents or representations, which have subsequently been found false or incorrect by 4{such appropriate authority; or}

(d) the dealer has issued tax invoice to another dealer without entering into a transaction of sale, whether in full or in part, or has issued tax invoice showing tax for an amount in excess of the amount involved in a transaction of sale but has not deposited the tax in full, or has issued tax invoice in contravention of the provisions of section 64; or

(e) the dealer has defaulted in furnishing any return under section 32 together with receipted challan showing payment of net tax late fee as referred to in sub-section (2) of section 32 and interest payable, if any, according to such return within the prescribed date or the time as extended by the Commissioner, or

(f) The dealer has failed to pay the net tax or interest payable or tax due or interest due under this Act.

(g) the dealer has received a tax invoice from another dealer without entering into a transaction of purchase

(2)        The cancellation of registration may be made on an application of the dealer or suo motu on the satisfaction of the appropriate authority.

(3) The cancellation of registration effected under clause (c) of sub-section (1), subject of such conditions and restrictions, as may be prescribed, shall be deemed to take effect from the date of validity of the certificate of registration as granted under sub-section (2) of section 24.

(3A) the cancellation of registration under any clause other than clause (c) of sub-section (1), subject to such conditions and restrictions, as may be prescribed, shall take effect from the date as specified by the appropriate authority in his order;

Provided that the date of cancellation of the certificate of registration in case referred to in clause (e) or clause (f) of sub-section (1) of section 29 shall not be a date prior to the date on which order of cancellation of passed.

(4) Where a dealer, within thirty days or within such further time as may be allowed by the appropriate authority from the date of cancellation of his certificate of registration under clause (e) or clause (f) of sub section (1), submits the return and pays the net tax along with interest payable under section 33 or section 34A, and late fee as referred to in sub-section (2) of section 32, or tax due or interest due, as the case may be, and makes an application to the appropriate authority forrestoration of his certificate of registration, the appropriate authority shall, by an order in writing, restore the certificate of registration of such dealer with effect from the date of cancellation of such certificate were in force during the period in which it remained cancelled;

provided that where the appropriate authority has granted the dealer any installments in respect of payment of net tax, interest and late fee as referred to in sub-section (2) of section 32, the certificate of registration, on application made by the dealer, may be restored, subject to such conditions and restrictions, and in such manner, as may be prescribed .

(5) The appropriate authority as referred to in sub-section (1), sub-section (2), sub-section (3A) and sub-section (4), shall be the appropriate assessing authority of the dealer notwithstanding the fact that the certificate of registration to such dealer may have been granted by an authority higher in rank to such appropriate assessing authority.