21.   De-registration.-

(1)    Every registered person who ceases to carry on his business or whose supplies become exempt from tax, shall apply to the Collector for cancellation of his registration, and the Collector, after satisfying himself through an audit that no tax liability is outstanding against that person, may cancel the registration of that person from such date as he may specify but not later than four months from the date of such application or the date all the dues outstanding against such person are deposited by him, whichever is the later:

Provided that the Collector may, for reasons to be recorded in writing, extend the aforesaid period by a further period of two months.

(2)    A registered person whose total taxable turnover of his taxable activity during the last twelve months remains below the limit specified in section 3A, may apply to the Collector for,-

(a)    Cancellation of his registration; and

(b)    his enrolment as turnover tax payer; and the Collector, if satisfied that the applicant has ceased to be liable for registration, may, cancel the registration of that person and may enrol him as turnover tax payer from such date as he may specify:

Provided that if such liability ceases during the currency of a financial year, the cancellation of registration and enrolment as turnover tax payer shall take effect from the beginning of next financial year.

(3)    The person making application under sub-section (1) or subsection (2) shall continue to file the return under section 26 till his registration is cancelled by the Collector.

(4)    If a registered person fails to file tax return under section 26 for six consecutive months, the officer of sales tax, not below the rank of an Assistant Collector, may, without prejudice to any action that may be taken under any other provision of this Act, after issuing a notice in writing and after giving an opportunity of being heard to such person, cancel the registration after satisfying himself that no tax liability is outstanding against such person.

(5)    The obligations and liabilities of the person whose registration is cancelled under sub-section (1), (2) or (4) relating to the period when he conducted business as a registered person shall not be affected by the fact that his registration has been cancelled or that he has ceased to be a registered person.

(6)    Any person enrolled under section 3A may apply for de-enrollment and the provisions of this section shall mutatis mutandis apply.