14. Registration.—(1) No dealer shall, while being liable to pay tax under section 3, carry on
business as a dealer unless he has been registered and possesses a certificate of registration.
(2) Every dealer required by sub-section (1) to be registered shall make an application for registration
within such time, in such manner and to such authority, as may be prescribed.
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(3) If the said authority is satisfied that the application is in order, it shall, in accordance with such
rules as may be prescribed, register the applicant within the prescribed period and grant him a certificate
of registration in the prescribed form which shall specify the goods or class of goods for the purposes of
sub-clause (v) of clause (a) of sub-section (2) of section 4:
Provided that if the said authority is of opinion that the application is not in order, it shall, by an order
passed within the said period and for reasons to be recorded in writing, reject the application:
Provided further that no goods or class of goods in respect of which the 1
[point of sale] has been
specified by the Administrator under section 5 shall be specified in a certificate of registration, and where
a notification is issued under that section subsequent to the grant of any certificate of registration in
respect of any goods or class of goods specified in a certificate, if the said certificate shall be deemed to
have been amended to omit the references to such goods or class of goods.
(4) For the removal of doubts, it is hereby declared that the goods or class of goods to be specified in
a certificate of registration granted under sub-section (3) of this section or sub-section (2) of section 16
shall not include goods referred to in sub-clause (i) or sub-clause (ii) of clause (a) of sub-section (2) of
section 4.
15. Voluntary registration.—(1) Any dealer, other than a dealer who deals exclusively in one or
more classes of goods specified in the Third Schedule, whose turnover during a year exceeds twenty-five
thousand rupees may, notwithstanding that he may not be liable to pay tax under section 3, apply for
registration under this section.
(2) The provisions of sub-sections (2), (3) and (4) of section 14 shall, as far as may be, apply in
relation to registration of dealers under this section.
(3) Every dealer who has been registered under this section shall, for so long as his registration
remains in force, be liable to pay tax under this Act.
(4) The registration of a dealer under this section shall be in force for a period of not less than three
complete years and shall remain in force thereafter unless cancelled under the provisions of this Act.
16. Provisional registration.—(1) Any person who intends to establish a business in Delhi for the
purpose of manufacturing goods of a value exceeding thirty thousand rupees per year, may,
notwithstanding that he is not required to be registered under section 14, apply for provisional registration
in such manner and to such authority as may be prescribed.
(2) If the said authority, after making such inquiry as it may consider necessary, is satisfied as to the
bona fide intention of the person making the application, it may, subject to such restrictions and
conditions as it may impose, grant a provisional certificate of registration on such person furnishing such
security as it may consider necessary and shall specify in such certificate the goods or class of goods for
the purposes of sub-clause (v) of clause (a) of sub-section (2) of section 4.
(3) Every person who has been granted a provisional certificate of registration under this section
shall, for so long as such certificate is in force, be liable to pay tax under this Act.
(4) A provisional certificate of registration granted under this section shall be in force for such period
as may be specified therein.
(5) The authority prescribed under sub-section (1) may, on application made in this behalf in the
prescribed manner and subject to such restrictions and conditions as it may impose, extend, from time to
time, the period specified in the provisional certificate of registration.
(6) The provisions of section 18 shall, so far as may be, apply in relation to security required to be
furnished under sub-section (2) of this section.
1. Subs. by Act 38 of 1978, s. 3 and the Second Schedule, for “points of sale” (w.e.f. 26-11-1978).
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(7) If a person, who has been granted a provisional certificate of registration under this section, fails
without sufficient cause to establish a business within the period specified in such certificate or fails to
comply with any of the restrictions or conditions subject to which such certificate was granted, he shall be
liable to pay a penalty equal to one and a half times the amount of tax which would have been payable
had he not been so registered under this section.
17. Special registration.—(1) No dealer shall, while being liable to pay tax under sub-section (5) of
section 3, carry on business as a dealer unless he has obtained a special certificate of registration.
(2) Every dealer required to be registered under sub-section (1) shall make an application for
registration within such time, in such manner and to such authority, as may be prescribed.
(3) If the said authority is satisfied that the application is in order, it shall, in accordance with such
rules as may be prescribed, grant a special certificate of registration to the applicant in the prescribed
form:
Provided that the said authority shall not specify in any such certificate the goods or class of goods
for the purposes of sub-clause (v) of clause (a) of sub-section (2) of section 4.
18. Security from certain class of dealers.—(1) The Commissioner may, if it appears to him to be
necessary so to do for the proper realisation of the tax, composition money or other dues payable under
this Act or for the proper custody and use of the forms referred to in the second proviso to clause (a) of
sub-section (2) of section 4, or the first proviso to section 5, as the case may be, impose, for reasons to be
recorded in writing as a condition of the grant of the certificate of registration under section 14, section 15
or section 17 to a dealer or of the continuance in effect of such certificate granted to any dealer, a
requirement that the dealer shall furnish in the prescribed manner and within such time as may be
specified in the order such security or, as the case may be, such additional security as may be so specified,
for all or any of the aforesaid purposes.
(2) No dealer shall be required to furnish any security or additional security under sub-section (1)
unless he has been given an opportunity of being heard and the amount of security or additional security
that may be required to be furnished, shall,—
(a) in the case of a dealer liable to pay tax under sub-section (2) of section 3 who has applied for
the grant of a certificate of registration under section 14, be such amount as the Commissioner 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;
(b) in a case where security is to be given for the proper custody and use of the forms referred to
in sub-section (1), be the amount of tax determined by the Commissioner which is likely to be saved
by a dealer by the issue of such forms;
(c) in any other case, not exceed the tax payable, in accordance with the estimate of the
Commissioner on the taxable turnover of the dealer,
for the year in which such security or additional security is required to be furnished.
(3) Where the security or additional security furnished by a dealer is in the form of a security bond
and the surety dies or becomes insolvent, the dealer shall, within thirty days of the occurrence of such
event, inform the authority granting the certificate of registration and shall, within ninety days of such
occurrence, execute a fresh surety bond.
(4) The Commissioner may by order, for good and sufficient cause, and after giving the dealer an
opportunity of being heard, forfeit the whole or any part of the security furnished by a dealer.
(5) Where, by reason of an order under sub-section (4), the security furnished by any dealer is
forfeited in whole or is rendered insufficient, he shall furnish a fresh 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.
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19. Amendment of certificate of registration.—(1) The Commissioner 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.
(2) An amendment of the certificate of registration made under sub-section (1) shall take effect:—
(a) in the case of a change in the name, ownership or place of business, or opening of a new place
of business, from the date of contingency which necessitates the amendment whether or not
information in that behalf is furnished within the time prescribed under section 40;
(b) in the case of any addition or modification in the description of any goods or class of goods in
the certificate of registration, from the date of the contingency if information in that behalf is
furnished within the time prescribed under section 40 and from the date of receipt of request for such
addition or modification by the Commissioner, in any other case;
(c) in the case of deletion of any goods or class of goods, from the date of order of deletion:
Provided that the Commissioner shall, before amending on his own motion a certificate of
registration, give the dealer affected by such amendment a reasonable opportunity of being heard:
Provided further that where in consequence of a change in the ownership of a business the liability to
pay tax of a dealer ceases, the amendment of the certificate of registration shall take effect from the date
on which information in respect of such change is furnished under section 40.
(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.
(4) For the removal of doubts, it is hereby declared that where a registered dealer—
(a) effects a change in the name of his business; or
(b) is a firm and there is a change in the constitution of the firm without dissolution thereof; or
(c) is a trustee of a trust and there is a change in the trustees thereof; or
(d) is a guardian of a ward and there is a change in the guardian; or
(e) is a Hindu undivided family and the business of such family is converted into a partnership
business with all or any of the co-parceners as partners thereof,
then, merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer, or
1
[the firm which changed the constitution] or the new trustees, or the new guardian, or as the case may be,
the partners of such partnership business, to apply for a fresh certificate of registration and on information
being furnished in the manner required by section 40 the certificate of registration shall be amended.
20. Cancellation of certificate of registration.—(1) Where—
(a) any business in respect of which a certificate of registration has been granted to a dealer under
this Act, is discontinued; or
(b) in the case of transfer of business by a dealer, the transferee already holds a certificate of
registration under this Act; or
(c) a dealer has ceased to be liable to pay tax under this Act,
the Commissioner may cancel the certificate of registration of such dealer or the transferor, as the case
may be, from such date as may be specified by him:
Provided that in a case referred to in clause (a) or clause (b), the certificate of registration shall be
deemed to be inoperative with effect from the date of discontinuance or transfer of the business, as the
case may be, and in a case referred to in clause (c), from the date on which the dealer’s liability to pay tax
has ceased, notwithstanding the fact that the order of cancellation is passed or that the particulars of the
dealer regarding cancellation are published, as required by section 65, in the Official Gazette, after the
aforesaid date:
1. Subs. by Act 38 of 1978, s. 3 and the Second Schedule, for “the firm who changed constitution” (w.e.f. 26-11-1978).
14
Provided further that where a dealer has failed to furnish information regarding discontinuance of his
business as required by section 40, the Commissioner shall before cancelling the certificate from any
specified date, publish in the Official Gazette, a notice of his intention so to do for the information of the
dealer and shall hear objections, if any, of the dealer before passing the order.
(2) A dealer registered under section 15 may, subject to the provisions of sub-section (4) of that
section, apply in the prescribed manner not later than six months before the end of a year to the
Commissioner for cancellation of his certificate of registration and the Commissioner shall, unless the
dealer is liable to pay tax under section 3, cancel the certificate of registration accordingly, and such
cancellation shall take effect from the end of the year.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the Commissioner 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 such dealer from such date as the Commissioner may specify in this
behalf—
(a) if the dealer has failed to pay any tax (including any penalty) due from him under any
provisions of this Act; or
(b) if the dealer holds or accepts or furnishes or causes to be furnished a declaration for the
purposes of sub-clause (v) of clause (a) of sub-section (2) of section 4 or section 5 which he knows or
has reason to believe to be false; or
(c) if the dealer who has been required to furnish the security under the provisions of section 18
has failed to furnish such security; or
(d) if the dealer contravenes or has contravened any of the provisions of this Act; or
(e) if the dealer has been convicted of an offence under this Act or under the Bengal Finance
(Sales Tax) Act, 1941 (Bengal Act VI of 1941), as then in force in Delhi; or
(f) if there is any other reason which in the opinion of the Commissioner warrants such
cancellation.
(4) (a) If an order of cancellation passed under sub-section (3) is set aside as a result of an appeal or
other proceeding under this Act, the certificate of registration of the dealer shall be restored and he shall
be liable to pay tax as if his certificate had not been cancelled.
(b) If any dealer whose certificate of registration has been restored under clause (a) satisfies the
Commissioner that tax has been paid by such dealer on sale of goods made to him during the period his
certificate of registration was inoperative which, but for the cancellation of such certificate he would not
have paid, then the amount of such tax shall be adjusted or refunded in such manner as may be prescribed.
(5) 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 within seven days of the
date of communication to him of the order of cancellation.
(6) If a dealer fails to surrender his certificate of registration as provided in sub-section (5), the
Commissioner may, by an order in writing and after giving the dealer an opportunity of being heard,
direct that the dealer shall pay, by way of penalty, a sum not exceeding twenty-five rupees for every day
of default.
(7) The cancellation of a certificate of registration shall not affect the liability of any person to pay tax
due for any period prior to the date of such cancellation, whether such tax is assessed before the date of
cancellation but remains unpaid or is assessed thereafter notwithstanding that he is not liable to pay tax
under this Act.
(8) Where by any order passed under this Act it is found that any person registered as a dealer ought
not to have been so registered, then, notwithstanding anything contained in this Act, such person shall be
liable to pay tax for the period commencing with the date of his registration and ending with the date of
such order, as if he were a dealer.