Registration of dealers

(1) No dealer shall, while being liable to pay tax under this Act, carry on business as a dealer unless he has been registered and possesses a registration certificate: Provided that in the case of a casual dealer, on payment of a fee of Rs.50/-, the Assessing Authority or the Officer-Incharge of the check-post or barrier or any other officer inspecting the goods at any other place, may dispense with the requirement of a valid certificate of registration under this section. (2) Any person intending to establish a business in Himachal Pradesh for the purpose of manufacturing goods for sale may, notwithstanding that he is not liable to registration under sub-section (1), be granted a registration certificate subject to such conditions and in the manner as may be prescribed, and such person when granted a registration certificate shall, for so long as such certificate is in force, be liable to pay tax under the Act: Provided that grant of such a certificate of registration shall be subject to the conditions that if such person fails to establish the business within the period specified in the certificate or fails to comply with any of the conditions specified therein, he shall be liable by order of the Assessing Authority, to pay a penalty equivalent to one-half of the amount of tax which would have been payable by him in respect of all the goods purchased by him as if he had not been registered under this sub-section: Provided further that a dealer who sells taxable goods, not liable to register under sub-section (1) but who desires to register voluntarily may make an application to the appropriate Assessing Authority in the manner as may be prescribed and shall pay tax only in accordance with section 4 from the date his gross turnover exceeds a taxable quantum as specified in sub-section (6) of section 4. (3) Every dealer required by sub-section (1) to be registered and every person who may be granted a registration certificate under sub-section (2) shall make an application in this behalf in the prescribed manner, to the Assessing Authority. Provided that a dealer may also make such application electronically in the prescribed manner. (4) If the Assessing Authority is satisfied that an application for registration made under sub-section (3) is in order, he shall, in accordance with such rules and on payment of such fee and subject to such conditions as may be prescribed, register the applicant and grant him a certificate of registration in the prescribed form. (5) When any dealer fails to apply for registration in contravention of sub-section (1), the Assessing Authority shall register such dealer and grant him a certificate of registration and such registration shall take effect as if it had been made under sub-section (4) on the dealer‘s application. (6) The Assessing Authority may, by order, ---- (a) amend certificate of registration on the dealer‘s application if the dealer or his legal representative furnishes the information that he-- (i) has transferred his business, or (ii) has changed the name (constitution) or nature of his business, or (iii) wants to open a new place of business or make any change either in the places of business or in the class or classes of goods specified in his certificate of registration for resale or for use in manufacture of goods for sale; (b) suspend a certificate of registration, without prejudice to any other penalty, if the dealer or person has violated any provision of this Act or rules made thereunder; (c) cancel a certificate of registration, on dealer‘s or, as the case may be, of his legal representative‘s application or suo-moto, without affecting liability to pay tax till such cancellation,- (i) if the dealer sells or otherwise disposes of his business or any place of business or discontinues his business, or (ii) if the dealer dies, or (iii) for any other sufficient cause including misuse of the certificate of registration or cessation of liability to payment of tax under this Act: Provided that no order affecting any person adversely shall be made under clauses (b) and (c) of this sub-section without affording him a reasonable opportunity of being heard; and (d) renew a certificate of registration for such period and in the manner and on payment of such fee as may be prescribed. (7) If any person knowingly uses a false registration number or uses a registration number of another person with a view to evade tax under this Act, the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may , after affording such person or the dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the tax to which he is assessed or is liable to be assessed, an amount equal to fifty percentum of the value of consignment.