Mr. Raj of Rajasthan intends to start business of supply of building material to various construction sites in Rajasthan. He has taken voluntary…

(a) 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 the prescribed provisions; or (b) a person paying tax under composition scheme has not furnished returns for a financial year beyond 3 months from due date of furnishing retun; or (c) any registered person, other than a person specified in clause (b), has not furnished returns for a prescribed period; or (d) any person who has taken voluntary registration 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: Thus, in view of the above-mentioned provisions, suo-motu cancellation of registration of Mr. Raj by proper officer is valid in law since Mr. Raj, a voluntarily registered person, has not commenced his business within 6 months from the date of registration. Further, where the registration of a person is cancelled suo-motu by the proper officer, such registered person may, subject to the provisions of rule 10B, apply for revocation of the cancellation of registration to such proper officer, within 90 days from the date of service of the order of cancellation of registration. However, the said period of 90 days may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Commissioner or an officer authorised by him in this behalf, not below the rank of Additional Commissioner or Joint Commissioner, as the case may be, for a further period not exceeding 180 days. Thus, considering the above provisions, the contention of Department is not valid in law as he has applied for revocation within the time limit of 90 days.