PRAG & ASSOCIATES

(1) Every dealer whose turnover during the twelve months immediately preceding the

commencement of this Act exceeds the limit prescribed under sub-section (1) of Section 5

shall get himself registered in the prescribed manner within thirty days of the

commencement of this Act.

(2) (a) Every dealer other than a dealer to whom sub-section (1) applies shall get himself

registered within the prescribed period from the date on which his turnover in a year first

exceeds the limit prescribed under sub-section (1) of Section 5.

(b) Every dealer being a transferee of a business within the meaning of sub-section (1) of

section 29 shall get himself registered within thirty days from the date of transfer of the

business of which he is a transferee.

registration certificate voluntarily may get himself registered under this Act;

(d) Any person intending to establish a business in the State for the manufacture of

goods for sale of value exceeding one lac in a year and who is registered in the Industries

Department of the State Government for establishing an industrial unit in the State or who is

issued a licence wherever necessary or has sent a memorandum of information to the

Central Government to establish a new industrial undertaking in the State under the

provisions of the Industries (Development and Registration) Act, 1951 (No. 65 of 1951) may,

notwithstanding that he is not liable for registration under clause (a), get himself registered

under this Act.

(3) Every dealer required to get himself registered under sub-section (1) or clause (a) or

clause (b) of sub-section (2), shall, or a dealer who desires to get himself registered under

clause (c) of sub-section (2), or a person who desires to get himself registered under clause

(d) of sub-section (2) may make an application to the Commissioner in such form and

manner as may be prescribed, giving correct and complete particulars therein. Such

application shall be accompanied by an affidavit in support of the particulars given in the

application and also a satisfactory proof of payment of a registration fee of five hundred

rupees in the prescribed manner.

(4) (a) On the day the application for grant of a registration certificate as required by subsection

(1) or sub-section (2) is received, the said authority shall grant the applicant a

registration certificate in the prescribed form.

(b) After issue of the registration certificate under clause (a), the Commissioner shall verify

the particulars given in the application in such manner as may be prescribed.

by the applicant in his application are incorrect or that the applicant has misrepresented

certain facts, he shall, after giving the applicant an opportunity of being heard and recording

the reasons in writing, cancel the registration certificate issued to the applicant under clause

(a) in accordance with the provisions of clauses (c) or clause (e) of sub-section (10) from

the date of its issue, not later than thirty days of the date of receipt of the application.

[from 10.8.10]

[(4) 10 (a) On receipt of the application for grant of registration certificate,-

(i) the said authority shall, if it is satisfied that the application is in order,

grant the applicant a certificate of registration in such form and manner as

may be prescribed; and

(ii) if the said authority is not so satisfied, he shall reject the application, not

later than thirty days from the date of receipt of the application.

(b) If the certificate of registration is not granted or the application is not rejected

within the aforesaid period of thirty days, the applicant shall, on expiration of

the said period, be entitled to a certificate of registration in accordance with

his application and the said authority shall issue a certificate of registration

accordingly. --24.12 .2007 to 9.8 .2010] 10

[(4) (a) On the day the application for grant of a registration certificate as required by subsection

(1) or sub-section (2) is received, the said authority shall grant the applicant a

registration certificate in the prescribed form.

(b) After issue of the registration certificate under clause (a), the Commissioner shall

verify the particulars given in the application in such manner as may be prescribed..

given by the applicant in his application are incorrect or that the applicant has

misrepresented certain facts, he shall, after giving the applicant an opportunity of

being heard and recording the reasons in writing, cancel the registration certificate

issued to the applicant under clause (a) in accordance with the provisions of clauses

( c ) or clause (e ) of sub-section (10) from the date of its issue, not later than thirty

days of the date of receipt of the application.

--1.4.2006 to 24.12 .2007]

(5) The registration certificate granted under sub-section (4) shall take effect from -

(a) in a case where a dealer required to get himself registered under clause (a) or clause

(b) of sub -section (2) has applied for registration within the period prescribed under

clause (a) or specified in clause (b) of the said sub-section, the date on which his

turnover in a year first exceeds the limit prescribed under sub-section (1) of section 5

or the date of transfer of business, as the case may be :

(b) in a case where a dealer required to get himself registered under clause (a) or

clause (b) of sub-section (2) has applied for registration after the expiry of the prescribed

or specified period, as the case may be, the date on which he applies for registration;

of sub-section (2), for registration the date of such application and notwithstanding the

provisions of section 5, such dealer or person as the case may be, shall be liable to pay

tax under this Act, during the period from the said date till his registration certificate

remains in force

(6) Without prejudice to the provisions of sub-section (6) of Section 2020 when a dealer has

without reasonable cause, failed to get himself registered within the prescribed time as

required by sub-section (1) or clause (a) or clause (b) of sub-section (2) the Commissioner

may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by

way of penalty, in addition to the fee payable, a sum not exceeding rupees five hundred.

(7) Every dealer who at the commencement of this Act holds a registration certificate under

the provisions of the Act repealed by this Act shall, on such commencement, be deemed for

all purposes of this Act to be a dealer registered and holding a registration certificate under

this Section.

(8) If any registered dealer or other dealer who is required to furnish returns under subsection

(1) of Section 18 -

(a) sells or otherwise disposes of his business or any part or place of his business or

effects or comes to know of any other change in the ownership of the business, or

(b) discontinues his business or changes his place of business or opens a new place

of business, or

he or if he dies, his legal representative shall within the prescribed time, inform the

prescribed authority accordingly.

(9) (a) The Commissioner shall -

(i) on an application made by a registered dealer for amendment of his registration

certificate in pursuance of the provisions of sub-section (8) or otherwise, amend the

registration certificate of the dealer or reject the application within 30 days of the date

of receipt of such application, after making such enquiry as he deems fit; and

(ii) on being satisfied that the registration certificate issued to a dealer requires

amendment with regard to certain particulars specified therein, amend the

registration certificate after giving the dealer an opportunity of being heard.

(b) When the registration certificate is amended under sub-clause (i) of clause (a) in

pursuance of any of the events specified in sub-section (8), such amendment shall take

effect from the date such event has taken place and in all other cases falling under the

said sub-clause the amendment shall take effect from the date of application. An

amendment made under sub-clause (ii) of clause (a) shall take effect from the date of

order for making such amendment.

(10)(a) on an application by a registered dealer that his business has been discontinued or

transferred, or the Commissioner on his own motion finds that a registered dealer has

discontinued or transferred his business ; or

(b) on an application by a registered dealer that his liability to pay tax has ceased ; or the

Commissioner on his own motion finds that as per the returns submitted by a registered

dealer, his turnover in the immediate previous year has not exceeded the limit prescribed

under section 5 ; or

registration certificate on the basis of the incorrect information furnished by the dealer ; or

(d) the Commissioner on his own motion finds that a registered dealer is in arrears of tax or

penalty or any other sum due under this Act or under the Act repealed by this Act, which is

more than rupees one lac and which remains outstanding for more than six months ; or

(e) the Commissioner on his own motion finds that the certificate of a registered dealer

should be cancelled for reasons to be recorded in writing by him,

the Commissioner may cancel the registration certificate.

Provided that where the Commissioner proposes to cancel the registration certificate

of a dealer under this sub-section, he shall give the dealer an opportunity of being heard.

[from 10.8.10]

[(10) When -

(a) a registered dealer discontinues or transfers his business; or

(b) the liability of a registered dealer to pay tax ceases; or

(d) a registered dealer is in arrears of tax or penalty or any other sum due under this

Act or under the Act repealed by this Act; or

(e) the Commissioner for reasons to be recorded in writing, is of the opinion that the

registration certificate should be cancelled for any other reason;

the Commissioner may either on his own motion or on the application of the dealer in this

behalf cancel the registration certificate:

Provided that where the Commissioner proposes to cancel the registration certificate of a

dealer under this sub-section, he shall give the dealer an opportunity of being heard. --

1.4.2006 to 9.8.10]

(11) Any dealer whose registration certificate is cancelled under clause (d) or clause (e) of

sub-section (10) shall, for the purpose of sub-section (6) of Section 2020 be deemed to be a

dealer, who has failed to apply for registration, but shall not be liable to pay any penalty

under the said sub-section.

20(11A) Where registration certificate of a dealer is cancelled under clause (e) of subsection

(10) for non filing of returns, the dealer may within thirty days from the date of

communication of cancellation order apply to the Commissioner for reinstatement of

registration certificate with a fee of rupees two thousand and if the Commissioner is

satisfied that the dealer has furnished all due returns along with payment of tax

payable as also interest , if any, the Commissioner may reinstate the registration

certificate effective from the date from which it was cancelled.20

(12) 2 (a) The Commissioner may, for the proper realisation of tax, from time to time demand

from a registered dealer reasonable security as may be prescribed to be furnished in the

prescribed manner . 2

(b) The Commissioner may, by order, forfeit the whole or any portion of the security

furnished by a dealer,-

(i) for collection of any amount of tax, interest or penalty payable by the dealer; or

(ii) if the dealer is found to have misused any prescribed certificate or declaration or

has failed to keep or retain them in the prescribed manner,

reasonable opportunity of being heard.