(1) Every dealer liable to
pay tax under sub section (1) of section 3, who either held registration
certificate under the Act of 1973 or whose Form: Al, A2, G1, G2 application for
registration under the said Act was
pending
till the appointed day, shall inform the assessing authority of such
particulars of his business in such form and manner within such period as may
be prescribed and such authority after receipt of such information, if it is
satisfied about the correctness of the same by making such inquiry as it may
consider necessary, shall issue to him a registration certificate under this
Act which shall be valid from the appointed day, otherwise, it shall, after
giving the affected person a reasonable opportunity of being heard, pass an
order declining registration:
Provided
that during the period prescribed for furnishing the information and till such
time final decision is taken on the same, the registration certificate issued
under the Act of 1973 shall be deemed to have been issued under this Act except
when registration is declined.
(2) Every dealer liable to
pay tax, on whom sub‑section (1) does not apply, shall, and any dealer,
who does not deal exclusively in exempted goods, may, notwithstanding that he
is not liable to pay tax under section 3, make an application for registration
to the assessing authority within such time, in such form and manner, on
payment of such fees not more than five hundred rupees, as may be prescribed.
(3) If the prescribed
authority is satisfied that the applicant is a bonafide dealer and the
application for registration made by him is in order, he shall, subject to the
provisions of section 12, grant him a certificate of registration in the
prescribed form and such certificate of registration shall be valid from such
date, as may be prescribed.
(4) Any dealer to whom a
registration certificate has been granted shall, from the date specified in the
registration certificate which shall not be later than the date of grant of the
registration certificate to him, be liable to tax and shall continue to be
liable to tax so long as the registration certificate held by him is not
cancelled notwithstanding that his liability to pay has ceased under sub‑section
(6) of section 3.
(5) The assessing authority
may, on information furnished to him under section 13 from time to time, by
order, amend any certificate of registration and may cancel the same if the
business is closed and such amendment in, or cancellation of, the certificate
shall take effect from such date as may be prescribed.
(6) When ‑
(a) any business, in respect of which
certificate has been granted, has been discontinued; or
(b) the liability to pay tax
of any dealer ceases in terms of sub‑section (6) of section 3, the
assessing authority shall, after giving a reasonable opportunity of being heard
to the affected person, cancel the certificate of registration and the
cancellation shall come into force after the expiry of such period, as may be
prescribed.
(7) A taxing authority not
below the rank of Deputy Excise and Taxation Commissioner incharge of a
district may, in the prescribed manner, cancel, subject to such restrictions
and conditions, as may be prescribed, the certificate of registration issued to
a dealer
(a) for being held guilty of avoidance of
tax under this Act or the Central Act;
(b) for misusing the certificate of
registration; or
(c) for any other sufficient cause:
Provided
that no order affecting any dealer adversely shall be made under this sub‑section
without affording him a reasonable opportunity of being heard.
[SECURITY FROM CERTAIN CLASS OF
DEALERS]
(1) Where it appears to the
authority to whom an application is made under section 11 to be necessary so to
do for the proper realisation of the tax payable or for the proper custody and
use of any forms referred to in this Act or the rules made there under which
are printed under the authority of the State Government or are required to be
authenticated by any authority under this Act before use, he may, by an order
in writing and for reasons to be recorded therein, impose as a condition for
the issue of a certificate of registration, a requirement that the dealer shall
furnish in the prescribed manner and within such time as may be specified in
the order such security as may be so specified, for all or any of the purposes
of this Act.
(2) Where it appears to the assessing authority to
be necessary so to do for the proper realisation of tax payable under this Act
or for the proper custody and use of the forms referred to in sub‑section
(1), he may, at any time while such certificate is in force, by an order in
writing and for reasons to be recorded therein, require the dealer, to whom the
certificate has been granted, to furnish within such time as may be specified
in the order and in the prescribed manner such security or, if the dealer has
already furnished any security in pursuance of an order under this sub‑section
or sub‑section (1), such additional security, as may be specified in the
order, for all or any of the aforesaid purposes.
(3) No dealer shall be required to furnish a security under sub‑section (1) or sub‑section (2) by the authority referred to therein, unless he has been given a reasonable opportunity of being heard and the amount of security that may be required to be furnished by any dealer under either of the aforesaid sub‑sections or the aggregate of the amount of such security and the amount of additional security that may be required to be furnished by any dealer under sub‑ section (2), shall in no case exceed the tax payable, ir accordance with the estimate of such authority, by the dealer for the year in which such security or, as the case may be, additional security is required to be furnished.
(4) Where the security
furnished by a dealer under sub‑section (1) or sub‑section (2) is
in the form of a 23 surety bond and the surety becomes insolvent or is
otherwise incapacitated or dies or withdraws, the dealer shall, within thirty
days of the occurrence of any of the aforesaid events, inform the authority
granting the certificate of registration and shall within ninety days of such
occurrence furnish a fresh surety bond or furnish in the prescribed manner
other security for the amount of the bond.
(5) The assessing authority
may, by order and for good and sufficient cause, forfeit the whole or any part
of the security furnished by a dealer ‑
(a) for realising any amount payable by the
dealer under this Act; or
(b) if the dealer is found
to have misused any of the forms referred to in sub‑section (1) or to
have failed to keep them in proper custody or to have failed to furnish
information in respect of their use or surrender them as prescribed:
Provided
that no order shall be passed under this sub‑section without giving the
dealer a reasonable opportunity of being heard.
(6) Where by reason of an
order under sub‑section (5), the security furnished by any dealer is
rendered insufficient, he shall make up the deficiency in such manner and
within such time, as may be prescribed.
(7) If a dealer fails to
comply, with an order under sub‑section (1) or sub‑section (2), or
with the provisions of sub‑section (4) or sub‑section (6), the
prescribed authority, may, after affording the dealer a reasonable opportunity
of being heard, order
(a) that no form referred to
in sub‑section (1) shall be issued to him or authenticated until the
dealer has complied with such orders or such provisions, as the case may be; or
(b) the rejection of the
application for registration, or if the dealer is already registered under this
Act, cancellation of his registration certificate, as the case may be, and in
the event of rejection of application for registration, the dealer shall be
deemed to have failed to apply for registration for the purposes of section 16.
[INFORMATION TO BE FURNISHED REGARDING
CHANGE OF BUSINESS ETC.]
If any
dealer to whom the provisions of sub‑section (2) of section 14 apply, ‑
(a) sells, transfers or otherwise disposes
of or discontinues his business;
(b) sells, transfers or
otherwise disposes of or discontinues his place(s) of business or opens new
place(s) of business;
(c) changes the name,
constitution or nature of his business including change in the goods traded or
manufactured or used in business or manufacture; or
(d) appoints an authorised agent,
he shall
within the prescribed time, inform the assessing authority accordingly, and if any dealer dies, his legal
representative shall in like manner inform the said authority:
Provided that
if a dealer or his legal representative, as the case may be, fails to inform of
the change as required under the foregoing provision having the effect of
transferring the liability to pay tax on another person, then, notwithstanding
the change, any tax which such person has become liable to pay after the change
has taken place, may be recovered as if no change has taken place:
Provided
further that nothing in the foregoing proviso shall discharge the transferee or
the succeeding dealer as a result of change, of his liability to tax.