Cancellation or suspension of Authorization etc

Cancellation or suspension of Authorization etc.

1. (1) If—
   • (a) the registration of an Authorised dealer, Recognised dealer or Commission agent holding a Permit, is cancelled; or
   • (b) in any year,—
     • (i) the turnover of sales of an Authorised dealer or, as the case may be, the turnover of purchases of a Commission agent holding a permit fails to exceed the amount requisite for the grant of Authorization or Permit, or
     • (ii) the value of taxable goods manufactured by a recognised dealer for sale by him fails to exceed the amount requisite for the grant of a Recognition or;
   • (c) the Authorised dealer, Recognised dealer or Commission agent holding a Permit, does not wish to continue to have an Authorization, Recognition or Permit, then in the circumstances stated—
     • (i) in clause (a), the dealer shall forthwith,
     • (ii) in clause (b), the dealer shall within fifteen days from the end of such year,
     • (iii) in clause (c), the dealer may at any time, surrender his Authorization, Recognition or Permit to the Commissioner for cancellation, and the Commissioner shall cancel the Authorization, Recognition or, as the case may be, the Permit, and accordingly in the circumstances stated in clause (a) the Authorization, Recognition or Permit shall stand cancelled from the date of cancellation of the registration, and in any other case it shall cease to have effect from the date on which it is surrendered for cancellation.
2. (2) If any Authorised dealer, Recognised dealer or Commission agent holding a Permit—
   • (a) fails to pay any tax (including any interest, amount forfeited and penalty) due from him under any provisions of this Act, or of any earlier law,
   • (b) contravenes or has contravened any provisions of this Act or any condition of his Authorization, Recognition or Permit, or
   • (c) becomes an insolvent, or
   • (d) has been convicted of an offence under this Act or any earlier law, or
   • (e) if the Commissioner has reason to believe that the continuance of the Authorization, Recognition or Permit, as the case may be, granted to a dealer under this Act is likely to be prejudicial to the interest of the revenue, the Commissioner may, after giving the Authorised dealer, Recognised dealer or, as the case may be, the Commission agent, a reasonable opportunity of being heard, suspend the Authorization, Recognition or, as the case may be, the Permit, for such period as he thinks fit, or cancel it. Thereupon, in either case, such dealer shall, within 7 days of receipt by him of the order of suspension or cancellation surrender the Authorisation, Recognition or Permit, as the case may be, to the Commissioner.