SECTION-29. Cancellation [or suspension]53 of registration.—

29. Cancellation [or suspension]53 of registration.—

(1) The proper officer may, either on his own motion or
on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the
registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,–
a. the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated
with other legal entity, demerged or otherwise disposed of; or
(b) There is any change in the constitution of the business; or
(c) [the taxable person is no longer liable to be registered under section 22 or section 24 or intends to optout of the
registration voluntarily made under sub-section (3) of section 25:]54
[Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered
person, the registration may be suspended for such period and in such manner as may be prescribed.]55
(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as
he may deem fit, where,––
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be
prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) Any registered person, other than a person specified in clause (b), has not furnished returns for a continuous
period of six months; or
(d) Any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced
business within six months from the date of registration; or
(e) Registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being
[Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer
may suspend the registration for such period and in such manner as may be prescribed.]56 By the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding
thirty days; (b) by the Commissioner, for a further period not exceeding thirty days, beyond the period
specified in clause (a).] 57

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