39.Procedure for registration

(1) An application for registration shall be made to such authority, in such manner and within. such period as may be prescribed and shall be accompanied by a fee of one thousand rupees for the principal place of business and in addition, a further fee of one thousand rupees in respect of each of the places of business other than the principal place of business.

(2) If the authority granting certificate of registration is satisfied that the application is in order, it shall register the applicant and grant to him a certificate of registration in the prescribed form specifying all his places of business with copies for each of his place of business other than the principal place of business.

(3) A certificate issued under sub-section (2) shall take effect from such date as may be specified.

 (4) Where it appears necessary to the authority granting a certificate of registration under this section so to do for the proper realisation of the tax payable under this Act it may, at any time, while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the dealer to whom the certificate has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security or, if the dealer has already furnished any security in pursuance of an order under this sub-section such additional security, as may be specified in the order for the aforesaid purpose.

(5) No dealer shall be required to furnish any security or additional security under sub-section (4) by the authority referred to therein, unless he has been given an opportunity of being heard. The amount of security which a dealer may be required to furnish under sub-section (4) or the aggregate of the amount of such security and the amount of additional security which he may be required to furnish under sub-section (4) by the authority referred to therein, shall not exceed one half of the tax payable, in accordance with the estimate of such authority, on the turnover of such dealer for the year in which such security or, as the case may be, additional security is required to be furnished.

 (6) Where the security furnished by a dealer under sub-section (5) is in the form of a surety bond and the surety becomes insolvent or dies, the dealer shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and shall within ninety days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.

(7) The authority granting the certificate of registration may by order and for good and sufficient cause forfeit the whole or any part of the security furnished by the dealer for realizing any amount of tax or penalty or interest payable by the dealer: Provided that no order shall be passed under this sub-section without giving the dealer an opportunity of being heard.

(8) Where by reason of an order under sub-section (7), the security furnished by any dealer is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be prescribed.

 (9) The authority granting the certificate of registration may, on application by the dealer to whom it has been granted, order the refund of any amount or part thereof deposited by the dealer by way of security under this section or, where the security is furnished by the dealer in the form of a pledge, release the pledge, if it is not required for the purpose of this Act, or if in the course of three years the dealer proves himself to be prompt in payment of tax and above reproach in the conduct of his business.

(10) The certificate issued under sub-section (3) shall be valid till it is cancelled by the competent authority or on the closure of business.

 (11) If the authority granting the certificate of registration is satisfied that a registration certificate or a copy thereof is lost or accidentally destroyed, it shall, on an application by the registered dealer accompanied by a fee of one hundred rupees, issue to him a duplicate of the registration certificate.

(12) A registered dealer shall exhibit at each place of his business the registration certificate, or a duplicate, or a copy thereof.

(13) A registered dealer shall be entitled to have his registration cancelled, if he is able to prove to the satisfaction of the prescribed authority that his turnover in each of the two consecutive years immediately preceding the application was less than the limit specified in section 3.

 (14) The authority granting the certificate of registration may, by order, for good and sufficient reasons to cancel, modify or amend any certificate of registration granted by it.

 (15) No application for registration of dealer under this section shall be refused and no order under sub-section (14) shall be made, unless the dealer concerned has been given an opportunity of being heard. .