The term ‘dealer’ is defined under Section 2(b) of Central Sales Tax, 1956 (‘Act’ for short) as any person who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods directly or indirectly, for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, and includes-
- A Local Authority, a body corporate, a company, any co-operative society, or other society, club, Firm, Hindu Undivided Family or other association of persons which carries on such business;
- A factor, broker, commission agent, del credere agent, or any other mercantile agent, by whatever name called and whether of the same description as hereinbefore mentioned or not, who carries on the business of buying, selling, supplying or distributing goods, belonging to any principal whether disclosed or not; and
- An Auctioneer who caries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by any principal or a nominee of the principal.
Section 6(1-A) of the Act provides that a dealer shall be liable to pay tax under this Act on a sale of any goods effected by him in the course of inter-State trade or commerce notwithstanding that no tax would have been leviable, whether on the seller or the purchaser, under the Sales Tax of the appropriate State if that sale had taken place inside that State.
Registration of Dealer
- Every dealer liable to pay tax under this Act shall make an application for registration to such authority in the appropriate State as the Central Government may, by general or special order, specify and every such application shall contain such particulars as may be prescribed;
- Any dealer liable to pay tax under the Sales Tax Law of the appropriate State or where there is no such law in force in the appropriate State or any part thereof, any dealer having a place of business in that State or part, may apply for registration to the authority even though he is not liable to pay tax. Such application shall contain such particulars as may be prescribed;
- The application for registration shall be made by a dealer in Form A. The form shall be-
- Signed by the proprietor of the business, or, in the case of a Firm, by one of its Partners, or, in the case of a Hindu undivided family, by the Karta, or Manager of the family, or in the case of a company by a director, managing agent or principal officer thereof, or, in the case of a Government, by an Officer duly authorized by that Government, or, in the case of any other association of individuals, by principal officer managing the business; and
- Verified in the manner provided in the said Form A;
- Where a dealer has more than one place of business within a State, he shall make a single application in respect of all such places, name in such application one of such places as the principal place of business for the purpose of the rules and submit such application specified in respect of the principal place of business so named;
- Any place so named shall not in any case be different from the place, if any, declared by him to be the principal place of business, by whatever named called, under the general sales tax law of the State;
- The application shall not be made later than 30 days from the date on which the dealer becomes liable to pay the tax;
- A fee of Rs.25/- shall be payable in respect of registration by means of court fee stamps affixed on the application;
- Where the authority is satisfied, after making such enquiry as it thinks necessary, that the particulars contained in the application are correct and complete and the fee has been paid it shall register the dealer and grant him a certificate of registration in Form B and also a copy of such certificate for every place of business within the State other than principal place of business mentioned therein;
- The certificate of registration granted shall be kept at the principal place of business mentioned in such certificate and a copy of such certificate shall be kept at every place of business within the State other than the principal place of business, mentioned in such certificate.
Rejection of application
- When the said authority is not satisfied that the particulars contained in the application are correct and complete, or where the fee has not been paid, he shall reject the application for reasons recorded in writing;
- Before the application is rejected, the applicant shall be given an opportunity of being heard in the matter and, as the case may be, of correcting and completing the said particulars or complying with the requirements;
Duplicate certificate
Where the certificate of registration granted to a dealer is lost, destroyed, defaced or mutilated he may, on application made in this behalf to the notified authority on payment of fee Rs.5/- , obtain duplicate copy of such certificate. The fee payable should be in the form of court fee stamps and attached in the application.
Amendment of certificate
A certificate of registration granted may, either on the application of the dealer or after due notice to the dealer, be amended by the authority. The dealer shall submit an application to the notified authority setting out the specific matters in respect of which he desires such amendment and the reasons therefore, together with the certificate of registration and the copies thereof.
The authority, if satisfied with the reason given makes such amendments, as he thinks necessary, in the certificate of registration and the copies thereof. The procedure as applies to the original certificate shall apply to the application for amendment of certificate. The Authority before making amendment to the certificate shall give the dealer an opportunity of being heard.
Cancellation of certificate
The registration certificate granted under this Act may be cancelled by the authority, if he is satisfied, after due notice to the dealer to whom it has been granted, that he has ceased to carry on business or has ceased to exist or has failed without sufficient cause, to comply with an order or has failed to pay any tax or penalty payable under this Act or in the case of a dealer registered has ceased to be liable to pay tax under the sales tax law of the appropriate State or for any other sufficient reason. Before canceling the certificate the Authority shall give the dealer an opportunity of being heard in the matter.
If the dealer desires to cancel the registration he shall apply not later six months before the end of a year to the authority which granted his certificate of registration for cancellation of registration along with certificate of registration and copies thereof. The Authority shall, unless the dealer is liable to pay tax cancel the registration accordingly, and where he does so, the cancellation shall take effect from the end of the year.
If the certificate of registration is cancelled, the dealer shall forthwith surrender to the notified Authority the certificate of registration and the copies thereof, if any, granted to him.
Security deposit
- Where it appears necessary to the authority, by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be so specified. Where it appears necessary to the authority for the proper realization of tax the authority may required to deposit additional security within the prescribed time;
- Any security or additional security shall be required to be furnished unless the dealer has been given an opportunity of being heard;
- The security shall equal to the tax payable under this Act;
- Where the security furnished by a dealer is in the form of a surety bond and the surety becomes insolvent or dies the dealer shall within 30 days of the occurrence of any of the above event, inform the authority and shall within 90 days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond;
- The Authority may for good and sufficient cause, by order, forfeit the whole or any part of the security furnished by a dealer for realizing any amount of tax or penalty payable by the dealer or if the dealer is found to have misused any of the forms or to have failed to keep them in proper custody. No such order shall be passed without giving the dealer an opportunity of being heard;
- If the dealer is aggrieved against any of the order as discussed above he may filed appeal against such order to such appellate authority within 30 days of the service of the order on him, but after furnishing the security, in such form and manner as may be prescribed. The Appellate Authority may allow the appeal if the appellant shows sufficient cause for delay in filing the appeal.
