(1) No dealer shall, while being liable to pay tax under section 4 or section 6, carry on business as a dealer unless he h|as filed an application in accordance with sub-section (2) or has been registered and possesses a registration certificate under this Regulation.
(2) Every dealer required by sub-section (1) to be registered shall make application in this behalJi in such manner, within such time, and to such authority, as may be prescribed.
(3) If the prescribed authority is satisfied that the application for registration is in order, it shall, in accordance with such procedure as may be prescribed, register the applicant and grant him a certificate of registration in the prescribed form which shall specify all his places or business and the class or classes of goods, for the purpose of clause (II) of sub-section (3) of section 7.
(4) The prescribed authority may, from time to time, amend any certificate of registration in accordance with information furnished to it under section 26 or otherwise received.
(5) The Commissioner may, for good and sufficient reasons, demand from a registered dealer or from a person who has applied for registration under this Regulation—
(i) reasonable security for the proper payment of tax payable by him under this Regulation;
(ii) reasonable security for the proper custody and use of the forms referred to in the first proviso to clause (II) of sub-section
(3) of section 7 which may be given to him by the prescribed authority.
(6) When any dealer has been convicted or has paid composition money under section 38 in respect of any contravention of sub-section
(1) of this section, the prescribed authority shall register such dealer and grant him a certificate of registration, and such registration shall take effect as if it had been made under sub-section (3) of this section ar upon the dealer's application.
(7) When—
(a) any business in respect of which a certificate has been granted to a dealer on an application made, has been discontinued or transferred, or Registry tion of dealers.
I28 THE GAZETTE OF INDIA EXTRAORDINARY [PART I I _
(b) a dealer has ceased to be liable to pay tax under section 4 of this Regulation, ihe Commissioner shall cancel the registration.
(8) The Commissioner may, at any time for reasons to be recorded in writing and after giving the dealer an opportunity of being heard cancel any certificate of registration.