Section 29 - Cancellation of registration.

Cancellation of registration: grounds, procedural hearing and obligation to discharge input tax liabilities on held goods.

The proper officer may cancel registration on application or on his own motion for business discontinuance, transfer, change in constitution, cessation of liability, prescribed contraventions, prolonged non-filing, failure to commence after voluntary registration, or fraud, with a date of effect that may be retrospective and subject to an opportunity of being heard. Cancellation does not relieve liability for prior tax and dues. A cancelled registrant must pay an amount equivalent to the input tax credit on stock, semi finished or finished goods, and on capital goods or plant and machinery held immediately before cancellation, or the output tax on such goods, calculated as prescribed.