Saturday, April 20, 2013

Cancellation of Certificate of Registration

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.