CHAPTER III

REGISTRATION, AMENDMENT AND CANCELLATION

Section-15 Registration:

(1) Any dealer or a person, carrying on business and liable to pay tax under this Act shall get himself registered within such time and in such manner as may be prescribed:

Provided that a dealer liable to pay tax shall be allowed two months time from the date from which he is first liable to pay such tax, to get himself registered.

(2) Every dealer-

(a) who sells any goods imported by him from out side of Uttaranchal; or

(b) who sells goods manufactured by him by using goods imported from out side the State; or

© who is liable to pay tax under any other provision of this Act, or

(d) who is subjected to tax deduction at source under the provision of Section 35 ; or

(e) who would be liable to pay tax (had the exemption not been granted under this Act), provided his actual or estimated turnover for the assessment year is not less than the taxable quantum as per sub- section (9) of section 3;

(f) who commences business during the course of an assessment year and whose average monthly estimated turnover for the remainder of such year, or whose actual turnover in any month during the aforesaid period is not less than one-twelfth of the amount specified in sub-section (9) of Section 3

shall be liable for registration

Provided that it shall not be necessary for a dealer who deals exclusively in goods exempted from tax under the provisions of this Act other than those exempted conditionally, to obtain registration under this Act.

(3) Not withstanding any thing contained in this Section, following dealers who otherwise may not be liable to pay tax, shall also be deemed liable for obtaining registration under this Act, from the date on which a dealer for the first time-

(i) receives any taxable goods from outside the State, or

(ii) imports goods inside or export goods outside the territory of India , or

(iii) consigns any taxable goods out side the State except by reason of a sale.

(4) Notwithstanding any thing contained in this Section, the following class of dealers shall be liable for registration irrespective of their turnover at the commencement of their business in the State-

(i) every casual trader,

(ii) every dealer registered under the Central Sales Tax Act,1956, within the State,

(iii) every dealer residing out side the State but carrying on business within the State,

(iv) every dealer in liquor including beer,

(v) every commission agent, broker, del credere agent, auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling supplying or distributing goods on behalf of his principal,

(vi) a Central, State or local or public authority or body that carries on business.

(5) Every dealer required to be registered as per the provisions referred to above, shall make an application in this behalf to the assessing authority within such time and in such manner as may be prescribed

(6)Every dealer who under any provisions of Uttaranchal Trade Tax Act,1948 had-

(i) held a registration certificate; or

(ii) held a provisional registration certificate; or

(iii) held a registration obtained voluntarily;

on the date immediately preceding the date of commencement of this Act and to whom sub-section (4) or sub-section (5) of Section 3 of this Act applies, and neither the registration certificate has been cancelled by the assessing officer nor such dealer has discontinued business till the date of commencement of this Act, he shall be deemed to be a registered dealer under this Act from the date of commencement of this Act.

(7) Every dealer who has been a registered dealer under the provisions of Uttaranchal Trade Tax Act 1948 immediately before the commencement of this Act and is not liable to registration under this Act in view of the turnover limits mentioned in sub-section (9) of Section 3, but if he desires to retain registration, he may be granted Voluntary Registration under this Act on his application submitted within such time and in such manner as may be prescribed and shall be deemed to be registered under this Act from the date of commencement of this Act;

(8) Every dealer who had applied for grant of registration certificate under any provision of the Uttaranchall Trade Tax Act 1948, before the date of commencement of this Act, and whose such applications is pending for disposal before the assessing authority under that Act, if registration certificate is subsequently granted to him under that Act, and if he has not discontinued business on the date of commencement of this Act, he shall be deemed registered dealer with effect from the date of commencement of this Act.

(9) Any dealer who had become liable for obtaining registration certificate under any provisions of Uttaranchal Trade Tax Act, 1948, and is liable to pay tax under this Act on the date of commencement of this Act, if such dealer had not applied for issue of registration under Uttaranchal Trade Tax Act, 1948, then without prejudice to any other liability under that Act shall, for grant of registration, present an application for registration with in such time and such manner as may be prescribed.

(10) Any dealer, if otherwise is not liable to tax under this Act according to provisions under sub-section (4) and sub-section (5) of Section 3, he shall not be deemed to be a registered dealer unless he presents application within such time and in such manner, as may be prescribed, for grant of voluntary registration certificate.

Section 16- Voluntary Registration:-

(1) Any dealer who-

(i) intends to manufacture any taxable goods for sale, or

(ii) intends to carry on business of sale or purchase of taxable goods, or

(iii) is carrying on business of sale or purchase of goods but otherwise is not liable to obtain registration

if he so desires, may present an application in the prescribed manner for grant of voluntary registration under this Act, and such registration certificate if granted, shall be valid with effect from the date on which the application is presented.

(2) Any dealer who has been granted voluntary registration under this Section or under the provisions of sub-section (7) of Section 15, shall, for so long as his registration remains in force, be liable to pay tax under this Act.

(3) The registration of a dealer on application made under this Section shall remain in force unless cancelled under the provisions of this Act.

(4) Subject to provisions of sub-section (3) above, a dealer registered on application made under this Section may apply in the prescribed manner to the assessing authority for cancellation of such registration and the assessing authority may, unless the dealer is liable to pay tax under this Act, cancel the registration after six months from the date of such application.

(5) When the turn over of any dealer registered on application made under this Section has, for three successive years remained below the taxable quantum in each of the years, his liability to pay tax shall cease.

(6) Provisions under Section 17, Section 18 and Section 19 shall mutatis mutandis apply in relation to registration certificate to be granted under this Section as those apply to registration under Section 15.

Section-17 Procedure for Registration

(1) Every dealer who holds a registration certificate under the provisions of Uttaranchal Trade Tax Act, 1948 referred to in sub-section (6), in sub-section (7) or sub-section (8) of Section 15, shall present the certificate of registration before the assessing authority along with an application for grant of fresh registration certificate under this Act with in 30 days incase of sub-section (6) and sub-section (7) from the date of the commencement of this Act. and incase of sub-section (8) from the date on which registration certificate is granted to him under the provisions of the Uttaranchal Trade Tax Act, 1948.

Provided that if any dealer referred to in sub-section (6) or in sub-section(7) above has not paid the required fee for renewal of registration certificate under provisions of Uttaranchal Trade Tax Act,1948, the registration certificate shall not be deemed valid on the date of commencement of this Act, but if such dealer deposits amount of renewal fee along with Rs,100 as late fee within 30 days from the date of commencement of this Act he shall be deemed to be a registered dealer from the date he presents his application to the assessing authority.

(2) Every dealer who is required to be registered under Section 15 or under Section 16 shall submit an application for registration in such form, accompanied with such fee, within such time and in such manner as may be prescribed.

(3) The assessing authority may, after such enquiry as it considers necessary and subject to provisions of Section 20 and such other conditions as may be prescribed in this behalf allow the application and cause the dealer to be registered, and issue a certificate of registration in the prescribed form.

Provided that where any security for grant of registration has been demanded from the dealer, registration shall be granted after the dealer has furnished such security to the satisfaction of the assessing authority.

(4) Registration shall, subject to provisions of this Act and the Rules made thereunder take effect from the date on which the dealer become liable to registration in case he applies for registration with in the period prescribed, and, in any other case, from the date on which he applies for registration.

(5) Where a dealer makes an application for registration after expiry of the time prescribed, but not later than 6 months after expiration of prescribed period, and, if he deposits, in addition to the registration fee prescribed, a late fee of rupees 100 for every month of delay or part thereof, the assessing authority may, on being satisfied that there were sufficient reasons for delay in applying for registration and after recording reasons thereof in writing, direct that the certificate of registration if issued, shall take effect from the date on which the dealer becomes liable to registration under sub-section (2) of Section 15.

(6) Registration certificate granted to a dealer shall remain in force till the date of discontinuance of business, unless the registration certificate is cancelled by the assessing authority at any time before, under the provisions of Section 18 of this Act;

(7) If application for registration is incorrect or incomplete or is not in order or the fee or penalty has not been paid or the security demanded has not been furnished or for any other sufficient reasons to be recorded in writing by the assessing authority, it may after giving a reasonable opportunity of being heard to the applicant reject the application by an order in writing.

(8) (a) If a dealer to whom a certificate of registration has been granted –

(i) has failed to file the returns under this Act within the time prescribed; or

(ii) knowingly furnishes incomplete or incorrect particulars in return ; or

(iii) has failed to pay any tax (including penalty or interest) due from him under the provisions of this Act within the time prescribed;

the certificate of registration of such dealer may be suspended by the assessing authority after giving such dealer an opportunity of being heard;

(b) Where any proceedings for cancellation of registration under Section 18 are pending for disposal before the assessing authority, the certification of registration of such dealer may be suspended for the period the proceeding of cancellation are pending, after giving such dealer an opportunity of being heard;

Provided that under sub-clause (a) above the certificate of registration of a dealer shall not be suspended if he has furnished return or returns within the date prescribed in the notice and he has paid tax, penalty or interest payable under this Act by such date as the assessing authority may extend upon an application filed by the dealer.

(9) Suspension of certificate of registration under clause (a) of sub-section (8) will be withdrawn and registration certificate shall be restored on an application made by the dealer on furnishing evidence of payment of all taxes (including penalty or interest, if any) and on furnishing of overdue return or returns with in 45 days from the date of suspension..

(10) If the dealer whose certificate of registration has been suspended under clause (a) of sub-section (8) fails to comply with provisions of sub-section (9), the assessing authority may cancel the registration of such dealer, after giving him an opportunity of being heard.

(11) Suspension of certificate of registration under clause (b) of sub-section (8) shall be withdrawn retrospectively with effect from the date of its suspension if cancellation of certificate of registration is not made

(12) If any dealer to whom the provisions of Section 15 apply-

(i) transfers his business or any part thereof by sale, lease, leave, license, hire or in any other manner whatsoever, or otherwise disposes off his business or any part thereof; or

(ii) acquires any business, whether by purchase or otherwise; or

(iii) effects or comes to know of any other change in the ownership or constitution of his business; or

(iv) discontinues his business or changes his place of business or ware house or opens a new place of business or ware house; or

(v) changes the name, style or nature of his business or effects any change in the class or description of goods in which he carries on his business, as specified in his certificate of registration; or

(vi) enters into partnership or other association in regard to his business; or

(vii) starts a new business or joins another business either singly or jointly with other person; or

(viii) in case of a company incorporated under a statue or a company or a private company registered under the Companies Act effects any change in the constitution of Board of Directors; or

(ix) effects any change in particulars furnished in application for grant of registration certificate under Section 15 or Section 16,

shall within thirty days of the occurring of any of the events aforesaid, inform the assessing authority in the form and manner as may be prescribed.

Section-18 Cancellation of registration-

(1) A certificate of registration granted under Section 15 or under Section 16 to a dealer, may be cancelled by the assessing authority, either on the application of the dealer or on its own motion where the assessing authority is satisfied that-

(a) any business in respect of which a certificate of registration has been granted to a dealer under this Act has been discontinued: or

(b) in the case of transfer of business by a dealer where the transferee already holds a certificate of registration under this Act; or

© an incorporated body is closed down or if it otherwise ceases to exist; or

(d) the owner of a proprietorship business dies leaving no successor to carry on business; or

(e) in case of a firm or association of persons if it is dissolved; or

(f) a dealer has ceased to be liable to pay tax under this Act or has ceased to be subject to registration; or

(g) has failed to pay any tax (including any penalty or interest) due from him under the provisions of this Act within three months of the due date; or

(h) having issued any tax invoice to any person regarding sales of goods, has deliberately failed to account for the said invoice in his books of account; or

(i) holds or accepts or furnishes or causes to be furnished a declaration form, which he knows or has reason to believe to be false; or

(j) who has been required to furnish security under the provisions of section 20 but has failed to furnish such security; or

(k) a dealer to whom registration certificate was granted has misused it or

(l) a dealer to whom registration was granted has permitted some other person to carry on business in the name of the dealer; or

(m) a dealer has transferred any prescribed form of declaration or a certificate under this Act obtained by him, to any other person or a dealer except for lawful purposes; or

(n) a dealer is registered by mistake; or

(o) there is any other reason which in the opinion of the assessing of authority warrants such actions,

the assessing authority may at any time, for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, cancel the certificate of registration held by any dealer from such date as the assessing authority may specify in this behalf..

(2) Notwithstanding any thing contained in sub-section (1) above, the assessing authority may with the permission of Commissioner or any officer authorised by him for the purpose, cancel the registration of a dealer who has not applied for cancellation of registration if the assessing authority is satisfied that the person is not entitled to registration or voluntary registration under Section 15 or Section 16.

(3) The registration certificate shall not be cancelled on its own motion, and the dealer’s application for cancellation of registration certificate shall not be rejected by the assessing authority without the dealer being given a reasonable opportunity of being heard.

(4) The cancellation of registration will take effect from the date of order of cancellation by the assessing authority unless it is to take effect from a different date ordered by the assessing authority.

(5) Every person whose registration is cancelled under this Section shall pay in respect of every taxable goods held as stock or as capital goods on the date of cancellation an amount equal to-

(i) the tax that would be payable in respect of those goods if the goods were sold at fair market price on that date; or

(i) the total tax credit previously claimed in respect of those goods,

whichever is higher.

(6) If an order of cancellation passed under this Section is set aside as a result of an appeal or other proceedings under this Act, the certificate of registration of the dealer shall, subject to the provisions of Section 15 and Section 16 be restored and he shall be liable to pay tax in the same manner as if his certificate of registration had never been cancelled.

(7) Every dealer who applies for cancellation of his registration shall surrender with his application the certificate of registration granted to him and every dealer whose registration is cancelled otherwise than on the basis of his application shall surrender the certificate of registration with in 15 days of date of communication to him of the order of cancellation;

Provided that such dealer shall furnish the details of all forms of declaration or certificates under this Act or the Central Sales Tax Act, 1956 obtained and used by him if not already filed, and shall also surrender the remaining unused forms of declaration or certificates with his application for cancellation of Registration Certificate or within fifteen days of the date of communication to him of the order of cancellation.

(8) The obligations and liabilities under this Act (including the filing of returns and payment of tax required by Section 23) of any person in respect of any thing done or omitted to be done by that person while the person is a registered person are not affected by the cancellation of the registration certificate.

Provided that the cancellation of registration on an application of the dealer or

other wise shall not affect the liability of a dealer to pay the tax (including any penalty and interest) due for any period irrespective of such cancellation whether such tax (including any penalty and interest) is assessed before the date of cancellation but remains unpaid or is assessed thereafter.

Section 19 Amendment of certificate of registration-

(1) The assessing authority may, after considering any information furnished under this Act or otherwise received and after making such inquiry as he may deem fit, amend from time to time any certificate of registration, and such amendment of the certificate of registration shall take affect;

(i) in case of change in the name, ownership or place of business or opening of a new place of business, from the date of the event necessitating the amendment whether or not information in that behalf is furnished within the time prescribed under sub-section (12) of Section 17;

(ii) in case of any addition or modification in the description of any goods in the certificate of registration, from the date of the event necessitating the amendment if information on that behalf is furnished within the time prescribed under sub-section (12) of Section 17 and in any other case, from the date of receipt of request for such addition or modification by the assessing authority;

(iii) in case of deletion of any goods or class of goods from the date of order of deletion;

Provided that where in consequence of a change in the owner ship of a business, the liability to pay tax of a dealer ceases, the amendment of certificate of registration shall take effect from the date on which information in respect of such change is furnished undersub-section (12) of Section 17.

Provided further that the assessing authority shall, before amending on his

own motion a certificate of registration, give the dealer affected by such amendment an opportunity of being heard.

(2) Where a registered dealer-

(i) effects a change in the name of his business; or

(ii) is a firm and there is change in the constitution of the firm without dissolution thereof; or

(iii) is a trust and there is a change in the trustees thereof; or

(iv) is a guardian of a ward and there is a change in the guardianship ; or

(v) is a “Joint Hindu family” and the business of such family is converted into a partnership business with all or any of the coparceners as partners thereof,

then merely by reason of any of the circumstances aforesaid, it shall not be necessary for such dealer or such firm to apply for a fresh certificate of registration and on information being furnished in the manner required under this Section, the certificate of registration shall be amended.

(3) Any amendment of a certificate of registration under this section shall be without prejudice to any liability for tax or penalty imposable or for any prosecution for an offence under this Act.

Section-20 Security in the Interest of Revenue-

(1) The assessing authority may , where it appears necessary to him so to do-

(i) for the proper realization of any tax, penalty or other sums due or payable under this Act; or

(ii) for the proper custody or use of forms prescribed under this Act or the rules framed thereunder; or

(iii) as a condition for the grant or as the case may be, the continuance in effect of registration certificate,

by an order in writing and for reasons to be recorded therein, direct, before the grant of or as the case may be at any time while the certificate of registration is in force, that the dealer or the person concerned shall furnish, in the prescribed manner and within the specified time, such security or if the dealer or the person concerned has already furnished such security, such additional security of any nature, as may be specified for all or any of the aforesaid purposes.

(2) The assessing authority may, by order in writing and for sufficient reason to be recorded therein, demand from any person (other than a registered dealer) who imports into the State of Uttaranchal any consignment of goods, reasonable security for ensuring that there is no evasion of tax.

(3) No dealer or the person concerned shall be required to furnish any security or additional security under this Section by the assessing authority unless he has been given an opportunity of being heard;

(4) The amount of such security or additional security that may be required to be furnished by any dealer shall-

(i) in the case of dealer liable to pay tax under provisions of Section 3 who has applied for the grant of certification of registration under Section 15 or Section 16, be such amount as the assessing authority may, having regard to the nature and size of the business of such dealer, determine for the payment of the tax for which the dealer may be or become liable under this Act;

(ii) in any other case not to exceed the tax payable in accordance with the estimate of the assessing authority on the turnover of the dealer for the assessment year in which such security is required to be furnished;

(5) Notwithstanding any thing contained in this Section, the Commissioner may, in respect of goods notified by the Govt. in this behalf, by a general order in writing, direct that the cash security of such amount as may be specified in such order shall be required to be furnished by a dealer or a person requiring any of the forms prescribed under this Act;

(6) Where the surety bond has been executed by a registered dealer and the said registered dealer’s certificate of registration is either cancelled or he has closed down his business the dealer shall furnish a fresh surety as may be directed or in the manner as stated in sub-section (7).

(7) Where the security furnished by a dealer or a person concerned under this Section is in the form of a surety bond and the surety dies or becomes insolvent, the dealer or the person concerned shall, within 30 days of the occurrence of any of the aforesaid events, inform the assessing authority and shall within 60 days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security of the amount of the bond, to the satisfaction of the assessing authority;

(8) The assessing authority may, by order in writing and for sufficient reasons to be recorded therein, forfeit the whole or any part of the security or the additional security furnished by a dealer, for-

(i) realizing or recovery of tax or any other sum due, or

(i) recovery of any financial loss caused to the State Govt. due to negligence or default in not making proper use of or not keeping in safe custody, blank or unused forms referred to in sub-section (1) above,

(ii) issuing of false invoices resulting in loss of revenue,

Provided that no order shall be passed under this sub-section without giving

the dealer or person concerned an opportunity of being heard.

(9) The assessing authority may-

(i) refuse to grant registration certificate; or

(ii) suspend any such certificate already issued; or

(iii) refuse to issue any of the forms referred to in sub-section (1);

to any dealer or person concerned, until the dealer or the person concerned has complied with the order regarding furnishing of the security or the additional security, as the case may be.

Provided that no order under this sub-section shall be passed without giving the dealer or the person concerned an opportunity of being heard.

(10) Where the security furnished by any dealer is forfeited in whole or in part or is rendered insufficient he shall furnish a fresh or further security of the requisite amount or, as the case may be, shall make up the deficiency in such manner and within such period as may be specified in the order.

(11) The assessing authority may, on application by a dealer who has furnished security as required, refund in the prescribed manner, any amount of security or part thereof if such security is not required for the purpose for which it was furnished

(12) No security under this Section shall be required to be furnished by a dealer exclusively dealing in goods exempted from tax under Section 4 and not making use of any of the forms prescribed under this Act or under the Central Sale Tax Act, 1956.

(13) An appeal under Section 51 may within such time and in such manner as may be prescribed, be filed against any order passed under this Section.

(14) Any person aggrieved by an order of appellate authority may, within such time and in such manner as may be prescribed, file an appeal under Section 53.

(15) The provisions of this Section shall mutatis mutandis, apply in relation to security required to be furnished under the order of any authority under this Act or the Court.

Section 21: Quoting of Registration Number:

(1) Every registered dealer shall get his registration number and the date from which it is effective, printed on every tax invoice, retail invoice, challan or any such documents relating to sales or purchases,

(2) Every registered dealer shall present his registration certificate if so desired by any authority under this Act in connection with any proceedings under this Act;

(3) Every registered dealer shall show his registration certificate if so required by the purchaser of any goods;

(4) Every registered dealer while purchasing any goods shall give his name, address and his registration number to the selling dealer who shall mention the same on sale invoice or bill or cash memo or challan or any such documents relating to such sale or purchase.

(5) Every registered dealer shall get his name, registration number and the date from which it is effective, painted on the signboard on all his business places, in such manner that the same are easily readable from the road.

Section 22:Realisation of Tax by Dealer;

(1) No person who is not a dealer registered under this Act, shall in respect of any sale and purchase made by or through him realize from any person any amount by way of Tax on sale and purchase of goods under this Act or any amount in lieu of the tax on sale and purchase of goods by giving it a different name and colour;

(2) No dealer registered under this Act, shall, in respect of any sale or purchase made by or through him realize from any person other than a person to whom goods are sold by him, any amount by way of tax on sale or purchase of goods or any amount in lieu of tax on sale or purchase of goods by giving it a different name or colour, and he shall not realize any tax or any amount in lieu thereof, which is not payable by him under the provisions of this Act;

(3) Where any tax on sale of goods is payable on any turnover by a dealer(including a commission agent or any of the persons mentioned in clause © of sub-section (11) of Section 2 registered under this Act, such a dealer may recover an amount, equivalent to the amount of tax on sale of goods payable, from the person to whom the goods are sold by him, whether on his own behalf or on behalf of his principal;

Provided that no dealer, from whom the assessing authority agrees to accept under Section 7, a composition money in lieu of the amount of the tax payable by him, shall realise from any person any amount by way of tax on sale of goods or an amount in lieu thereof by giving it a different name or colour.

(4) Where a registered dealer realises tax on sale of goods from the purchaser the tax invoice or retail invoice or bill shall separately show the price of the goods sold and the amount realised as tax;

(5) If a dealer who is liable to pay tax on sale of any goods, does not charge amount of tax separately from the purchaser of such goods or after charging the amount of tax, does not show such amount separately on sale invoice or bill or cash memo, the selling dealer shall be liable to pay tax on total price of goods.

(6) A person may refuse to pay any amount in the name of tax on any purchase of goods if the seller of such goods does not comply with the provisions of sub-section (5) above.

(7) If any dealer purchases any goods from a registered dealer who does not comply with the provision of sub-section (5) above, such dealer shall not be entitled to the input tax credit in respect of such purchase.