27. Cancellation of registration

(1) In any case where,

(a) any business of a registered dealer has been discontinued, transferred fully or otherwise disposed of; or

(b) there is any change in the status of the ownership of the business; or

(c) the taxable turnover of sale of goods of a registered dealer has,during any period of twelve consecutive months not exceeded [ten];or

(d) a dealer issues tax invoices without effecting any taxable sales; or

(e) a dealer being an individual, registered under this Act dies, and for any other good and sufficient reason, the prescribed authority may, either on its own motion or on the application of the dealer, or in the case of death, on the application of the legal heirs, made in the prescribed manner, cancel the registration certificate from such date, including any anterior date, as it considers fit having regard to the circumstances of the case.

Provided that in the case of a deceased individual, on application by his legal heirs for transfer of registration and subject to such conditions as may be prescribed, the prescribed authority may instead of cancellation permit transfer of his certificate of registration to the legal heirs. ;

(2) The cancellation of a certificate of registration under this Section shall not affect the liability of the dealer to pay tax, any penalty and interest due for any period prior to the date of cancellation whether or not such tax, penalty and interest is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.

(3) On cancellation of registration, except where the business is transferred as a whole to another registered dealer as specified, a dealer who has availed deduction of input tax, shall be liable to repay such input tax on any taxable goods held by him calculated on at their prevalent market price.

(4) A dealer liable to pay tax under sub-section (3) shall furnish a final return at such time as may be prescribed.

(d) a dealer issues tax invoices without effecting any taxable sales; or

(e) a dealer being an individual, registered under this Act dies, and for any other good and sufficient reason, the prescribed authority may, either on its own motion or on the application of the dealer, or in the case of death, on the application of the legal heirs, made in the prescribed manner, cancel the registration certificate from such date, including any anterior date, as it considers fit having regard to the circumstances of the case.

Provided that in the case of a deceased individual, on application by his legal heirs for transfer of registration and subject to such conditions as may be prescribed, the prescribed authority may instead of cancellation permit transfer of his certificate of registration to the legal heirs. ;

(2) The cancellation of a certificate of registration under this Section shall not affect the liability of the dealer to pay tax, any penalty and interest due for any period prior to the date of cancellation whether or not such tax, penalty and interest is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.

(3) On cancellation of registration, except where the business is transferred as a whole to another registered dealer as specified, a dealer who has availed deduction of input tax, shall be liable to repay such input tax on any taxable goods held by him calculated on at their prevalent market price.

(4) A dealer liable to pay tax under sub-section (3) shall furnish a final return at such time as may be prescribed.

(d) a dealer issues tax invoices without effecting any taxable sales; or

(e) a dealer being an individual, registered under this Act dies, and for any other good and sufficient reason, the prescribed authority may, either on its own motion or on the application of the dealer, or in the case of death, on the application of the legal heirs, made in the prescribed manner, cancel the registration certificate from such date, including any anterior date, as it considers fit having regard to the circumstances of the case.

Provided that in the case of a deceased individual, on application by his legal heirs for transfer of registration and subject to such conditions as may be prescribed, the prescribed authority may instead of cancellation permit transfer of his certificate of registration to the legal heirs. ;

(2) The cancellation of a certificate of registration under this Section shall not affect the liability of the dealer to pay tax, any penalty and interest due for any period prior to the date of cancellation whether or not such tax, penalty and interest is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.

(3) On cancellation of registration, except where the business is transferred as a whole to another registered dealer as specified, a dealer who has availed deduction of input tax, shall be liable to repay such input tax on any taxable goods held by him calculated on at their prevalent market price.

(4) A dealer liable to pay tax under sub-section (3) shall furnish a final return at such time as may be prescribed.