Cancellation of registration: show-cause notice triggers potential revocation and obligation to pay arrears if not satisfactorily replied. Cancellation is initiated by a proper officer issuing a show-cause notice in the prescribed form requiring a response within the stipulated period. If the person is no longer liable to be registered or is liable to cancellation, the officer shall issue a cancellation order in the prescribed form, determine the effective date, and direct payment of arrears of tax, interest or penalty. A satisfactory reply will lead the officer to drop proceedings and pass an order in the prescribed form. The same procedure applies to legal heirs of a deceased proprietor.