Recognition

Where during the previous or current year, the value of taxable goods manufactured by a Registered dealer for sale by him exceeds Rs. 5,000 he may apply for Recognition to the Commissioner. Subject to the provisions of section 38, the Commissioner shall, in respect of any goods specified in Part II of Schedule C required by the dealer for use within the State in the manufacture of taxable goods for sale by him or in the packing of goods so manufactured, if the dealer satisfies such further requirements (including the furnishing of adequate security) as may be prescribed, issue to him a Recognition in such form and on such conditions, as may be prescribed;

Explanation.—Where a Registered dealer has during the year commencing on the first day of April 1978 been a dealer registered under an earlier law, and the value of all taxable goods manufactured by him during that year exceeded Rs. 5,000, he may also apply under this section for Recognition to the Commissioner, and the Commissioner shall issue to him a Recognition in the manner aforesaid.