Page 212 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 12: Central Sales Tax

The dealer can apply for registration at any time and, if he does not apply for registration no Notes
penalty will be imposed upon him.

Application for Registration

Application for registration should be made in prescribed form 'a' as per CST (registration and
turnover) rules; within 30 days from the date when dealer becomes liable to CST. Application
fee of 25 is payable (by way of court fee stamps). Application has to be signed by (a) proprietor
of business (b) one of the partners in case of business owned by partnership firm (c) karta or
manager of huf (d) director or principal officer of company (e) principal officer in case of
association of individuals or (f) officer authorised by government in case of government.
Additional Places of Business

If a dealer has places of business in different states, he has to obtain separate registration in each
state. However, if he has more than one places of business within the same state, he has to get
only one registration with additional places of business endorsed on the certificate.

Security from Dealer Under CST Act

As per section 7(2a) of CST Act, the registering authority can ask for proper security from the
applicant for (a) realisation of taxes due and (b) proper custody and use of forms (like c, e-i/e-ii,
f and h) which are supplied by sales tax authorities for use by the dealer [section 7(2a)]. Additional
security can also be demanded from a dealer who is already registered [section 7(3a)]. Security
cannot be demanded without granting opportunity of personal hearing. The security should not
be more than estimated tax liability for the current year i.e. Year in which security/additional
security is demanded [section 7(3bb)]. Security may be in form of surety, execution of a bond, by
deposit of government securities or by way of cash deposit. Demanding security is not essential.
Moreover, security demanded should be reasonable and for good and sufficient reasons.
The security can be forfeited, after giving personal hearing, if the CST due is not paid by dealer
or the blank sales tax forms issued to him are misused [section 7(3d)]. After such forfeiture,
additional security has to be furnished. If such additional security is not furnished, sales tax
authority may not issue further blank sales tax forms.
The security can be refunded, partly or wholly, if, sales tax authorities are of opinion that such
security is not required.
Order demanding security or additional security or not refunding security is appealable. Appeal
should be filed within 30 days. The appellate authority can condone the delay in filing of appeal,
if sufficient cause is shown [section 7(3h)]. There is no further appeal against the order of appellate
authority and the order passed by appellate authority is final [section 7(3j) of CST Act].

Other Documents Required at Time of Registration

Other documents required at the time of registration vary from state to state. Normally, following
are asked for - (a) particulars of directors/partners (b) copies of articles of association,
memorandum in case of company and partnership deed if applicant is a firm (c) copies of rent
agreements (d) nominations as manager (e) list of places of business, godown (f) details of
machinery (g) details of bankers (h) photographs of directors/partners.

LOVELY PROFESSIONAL UNIVERSITY 207