Cancellation of registration under specified circumstances

(1) Notwithstanding anything contained in section 26 or section 27, a registered dealer who does not manufacture goods in Sikkim for sale, may apply in the prescribed manner to the prescribed authority for cancellation of his registration granted under this Act, if during the year in which such application is made and during the year immediately preceding such year, he dealt exclusively in tax-free goods specified in Schedule 1. (2) If the Prescribed Authority is satisfied that the application made under sub-section (1) is in order, he shall cancel the registration. (3) A registered dealer whose registration has been cancelled under sub-section (2) shall continue to be liable to pay tax in accordance with the provisions of sub-section (4) of section 8. In the event of his making any sale of goods taxable under this Act subsequent to such cancellation of registration, but during the period of such liability to pay tax, he shall within thirty days of such sale, apply for registration under section 26 and such application shall be disposed of in accordance with provisions of that section.