Section 22(10) in The M.P. Vanijyik Kar Adhiniyam, 1994
(10)(a)When a registration certificate is cancelled under subsection (9) in any case other than that of a dissolution of firm or entire transfer of the business of dealer, the dealer shall be liable to pay tax on his stock of goods remaining unsold at the time of cancellation of the registration certificate.(b)(i)Any dealer whose application for registration is rejected under clause (c) of sub-section (4); or(ii)any dealer whose registration certificate is cancelled under clause (d) or clause (e) of sub-section (9);he shall, for the purpose of sub-section (6) of Section 27 be deemed to be a dealer, who has failed to apply for registration, but he shall not be liable to pay any penalty under the said sub-section.
