Cancellation of registration and transfer of business

(1) The prescribed authority may cancel the registration of any dealer in any of the following cases- (a) in the case of incorporated body, closed down, sold or transferred or if the incorporated body otherwise ceases to exist; (b) in the case of individual ownership, if the owner dies; (c) in the case of a firm or association of persons if it is dissolved or if the registered dealer ceases to be engaged in the business or if a person is registered by mistake. (2) The cancellation of registration may be on prayer from the dealer or on the prescribed authority's findings. (3) All the goods that remain in stock at the time of cancellation of registration (including capital goods) on which input tax has already been given credit, tax shall be assessed and collected in the manner as may be prescribed. (4) The cancellation of registration will take effect from the end of the period in which the registration is cancelled unless the prescribed authority orders the cancellation to take effect on an earlier date. (5) Any dealer registered under this Act shall mention the Registration Certificate No issued by the prescribed authority in his return, challan, petition and other documents used for the purpose.