Tenn. Code Ann. § 55-5-118: Grounds for suspension or revocation of certificates or special plates and temporary tags or permits of manufacturers, transporters or dealers

The department is also authorized to suspend or revoke a certificate or the special plates issued to a manufacturer, transporter or dealer and temporary tags or permits issued under chapters 1-6 of this title upon determining that the person is not lawfully entitled to the certificate or plates or has made or knowingly permitted any illegal use of the plates, or has committed fraud in the registration of vehicles, or failed to give notices of transfers when and as required by chapters 1-6 of this title.