As per Rule 17 of LBT Rules 2010 Commissioner can suo moto or after receiving application from the assesses cancel the registration certificate.
Below is the bare wordings of Rule 17.
Cancellation of Certificate of Registration.-
(1) Where,-
(a) any business, including that of a dealer who is deemed to be registered under sub-rule (3) of rule 9 of these rules, in respect of which a certificate of registration has been issued under these rules, has been discontinued, or has been transferred or otherwise disposed of, or
(b) neither the turnover of sales nor the turnover of purchases of a registered dealer, including a dealer who is deemed to be registered under sub-rule (3) of rule 9, has, during any year exceeded the relevant limit prescribed by these rules, then, the dealer shall apply in the prescribed manner, for cancellation of his certificate of registration and the Commissioner shall, after holding such inquiry as he deems fit, cancel the certificate of registration with effect from such date as he may fix in accordance with these rules.
Provided that, where the Commissioner is satisfied that any business in respect of which a certificate of registration has been issued under these rules, has been discontinued or transferred or disposed of and the dealer has failed to apply as aforesaid, for cancellation of his certificate of registration, the Commissioner may, after giving such dealer a reasonable opportunity of being heard, cancel the certificate of registration with effect from such date as he may fix to be the date from which the business has been discontinued or transferred or disposed of, as the case may be.
Provided further that, the cancellation of a certificate of registration on an application of the dealer or otherwise, shall not affect the liability of the dealer to pay the local body tax, including any penalty, interest and sum forfeited due for any period prior to the date of cancellation of the certificate of registration, whether such local body tax, including any penalty, interest and sum forfeited, is assessed or quantified before or the date of cancellation but has remained unpaid, or is assessed or quantified thereafter
Provided also that, for the purpose of this rule, such dealer shall be deemed not to have been a registered dealer from the date of cancellation of the certificate of registration as fixed by the Commissioner under the preceding provisions of this sub-rule.
(2) Any application for cancellation of certificate of registration shall be made to the Commissioner in Form 'C' of these rules.
(3) If the Commissioner is satisfied that the application is in order, he shall, by an order in writing, cancel the certificate of registration with effect from a date fixed in accordance with sub-rule (4) and shall, by a notice placed on the notice board of the Corporation, publish the name, address and registration number of such dealer and the date from which such cancellation takes effect. A copy of such order shall be served on the dealer.
(4) Where a certificate of registration is to be cancelled,-
(a) on the ground referred to in clause (a) of sub-rule (1), the date on which the business has been discontinued or has been transferred or otherwise disposed of, shall be the date of cancellation of registration,
(b) on the ground referred to in clause (b) of sub- rule (1) of this rule, the date of cancellation of the certificate of registration, shall not be later than the first day of the month next following the date on which the notice is published under sub-• rule (3).
(5) Where the certificate of registration of a dealer is to be cancelled under the first proviso to sub-clause (1) the Commissioner shall, after giving such dealer an opportunity of being heard, cancel the certificate of registration, by an order in writing, with effect from such date as the Commissioner may fix to be the date from which the business has been discontinued or transferred or disposed of, as the case may be, and shall, by a notice placed on the notice board of the Corporation, publish the nail1e, address and registration number of such dealer and the date from which such cancellation takes effect. A copy of such order shall be served on the dealer.
(6) If the certificate of registration of a dealer is cancelled, either on his application or under the first proviso to clause (b) of sub-rule (1) of this rule, the dealer shall surrender the certificate of registration and the copies thereof, if any, granted to him, to the Commissioner, within fifteen days from the date of receipt by him, of the order of cancellation of his certificate of registration.
(7) If a registered dealer who is required to furnish security deposit fails to do so, the Commissioner shall, after giving such dealer an opportunity of being heard, cancel, by an order in writing, the certificate of registration of such dealer and shall bring this order to the notice of the general public by way of publishing the name, address and the registration number of such dealer in the newspaper.
Below is the bare wordings of Rule 17.
Cancellation of Certificate of Registration.-
(1) Where,-
(a) any business, including that of a dealer who is deemed to be registered under sub-rule (3) of rule 9 of these rules, in respect of which a certificate of registration has been issued under these rules, has been discontinued, or has been transferred or otherwise disposed of, or
(b) neither the turnover of sales nor the turnover of purchases of a registered dealer, including a dealer who is deemed to be registered under sub-rule (3) of rule 9, has, during any year exceeded the relevant limit prescribed by these rules, then, the dealer shall apply in the prescribed manner, for cancellation of his certificate of registration and the Commissioner shall, after holding such inquiry as he deems fit, cancel the certificate of registration with effect from such date as he may fix in accordance with these rules.
Provided that, where the Commissioner is satisfied that any business in respect of which a certificate of registration has been issued under these rules, has been discontinued or transferred or disposed of and the dealer has failed to apply as aforesaid, for cancellation of his certificate of registration, the Commissioner may, after giving such dealer a reasonable opportunity of being heard, cancel the certificate of registration with effect from such date as he may fix to be the date from which the business has been discontinued or transferred or disposed of, as the case may be.
Provided further that, the cancellation of a certificate of registration on an application of the dealer or otherwise, shall not affect the liability of the dealer to pay the local body tax, including any penalty, interest and sum forfeited due for any period prior to the date of cancellation of the certificate of registration, whether such local body tax, including any penalty, interest and sum forfeited, is assessed or quantified before or the date of cancellation but has remained unpaid, or is assessed or quantified thereafter
Provided also that, for the purpose of this rule, such dealer shall be deemed not to have been a registered dealer from the date of cancellation of the certificate of registration as fixed by the Commissioner under the preceding provisions of this sub-rule.
(2) Any application for cancellation of certificate of registration shall be made to the Commissioner in Form 'C' of these rules.
(3) If the Commissioner is satisfied that the application is in order, he shall, by an order in writing, cancel the certificate of registration with effect from a date fixed in accordance with sub-rule (4) and shall, by a notice placed on the notice board of the Corporation, publish the name, address and registration number of such dealer and the date from which such cancellation takes effect. A copy of such order shall be served on the dealer.
(4) Where a certificate of registration is to be cancelled,-
(a) on the ground referred to in clause (a) of sub-rule (1), the date on which the business has been discontinued or has been transferred or otherwise disposed of, shall be the date of cancellation of registration,
(b) on the ground referred to in clause (b) of sub- rule (1) of this rule, the date of cancellation of the certificate of registration, shall not be later than the first day of the month next following the date on which the notice is published under sub-• rule (3).
(5) Where the certificate of registration of a dealer is to be cancelled under the first proviso to sub-clause (1) the Commissioner shall, after giving such dealer an opportunity of being heard, cancel the certificate of registration, by an order in writing, with effect from such date as the Commissioner may fix to be the date from which the business has been discontinued or transferred or disposed of, as the case may be, and shall, by a notice placed on the notice board of the Corporation, publish the nail1e, address and registration number of such dealer and the date from which such cancellation takes effect. A copy of such order shall be served on the dealer.
(6) If the certificate of registration of a dealer is cancelled, either on his application or under the first proviso to clause (b) of sub-rule (1) of this rule, the dealer shall surrender the certificate of registration and the copies thereof, if any, granted to him, to the Commissioner, within fifteen days from the date of receipt by him, of the order of cancellation of his certificate of registration.
(7) If a registered dealer who is required to furnish security deposit fails to do so, the Commissioner shall, after giving such dealer an opportunity of being heard, cancel, by an order in writing, the certificate of registration of such dealer and shall bring this order to the notice of the general public by way of publishing the name, address and the registration number of such dealer in the newspaper.
