Section 7 of Central Sales Tax Act 1956 defines who should register under the Act. Provisions in the act related to Registration of dealers under Central Sales Tax Act is as follows
Section 7 Registration of Dealer
Section 7 (1) Every dealer liable to pay tax under this Act
shall, within such time as may be prescribed for the purpose,
make an application for registration under this Act 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.
(2) 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, as the case may be, may, notwithstanding that he is not liable to pay tax under this Act, apply for registration under this Act to the authority referred to in sub-section (1), and every such application shall contain such particulars as may be prescribed.
Explanation- For the purposes of this sub-section, a dealer
shall be deemed to be liable to pay tax under the sales tax law
of the appropriate State notwithstanding that under such law a
sale or purchase made by him is exempt from tax or a refund or
rebate of tax is admissible in respect thereof.
(2A) Where it appears necessary to the authority to whom an
application is made under sub-section (1) or sub-section (2) so
to do for the proper realisation of the tax payable under this
Act or for the proper custody and use of the forms referred to
in clause (a) of the first proviso to sub-section (2) of section
6 or sub-section (1) of section 6A or clause (a) of sub-section
(4) of section 8, he may, 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, for
all or any of the aforesaid purposes.
(3) If the authority to whom an application under sub-section
(1) or sub-section (2) is made is satisfied that the application
is in conformity with the provisions of this Act and the rules
made thereunder and the condition, if any, imposed under
subsection (2A), has been complied with, he shall register the
applicant and grant to him a certificate of registration in the
prescribed form which shall specify the class or classes of
goods for the purposes of sub-section (1) of section 8.
(3A) Where it appears necessary to the authority granting a
certificate of registration under this section so to do for the
proper realisation of tax payable under this Act or for the
proper custody and use of the forms referred to in
sub-section(2A), he 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 hasbeen
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 securityin pursuance of an
order under this sub-section or sub-section (2A), such
additional security, as may be specified in the order, for all
or any of the aforesaid purposes.
(3B) No dealer shall be required to furnish any security under sub-section (2A) or any security or additional security under sub-section (3A) unless he has been given an opportunity of being heard.
(3BB) The amount of security which a dealer may be required to
furnish under sub-section (2A) or sub-section (3A) or the
aggregate of the amount of such security and the amount of
additional security which he may be required to furnish under
subsection (3A), by the authority referred to therein, shall not
exceed-
(a) in the case of a dealer other than a dealer who has made an
application, or who has been registered in pursuance of an
application, under sub-section (2), a sum equal to the tax
payable under this Act, 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; and
(b) in the case of a dealer who has made an application, or who
has been registered in pursuance of an application, under
sub-section (2), a sum equal to the tax leviable under this Act,
in accordance with the estimate of such authority on the sales
to such dealer in the course of inter-State trade or commerce in
the year in which such security or, as the case may be,
additional security is required to be furnished, had such dealer
been not registered under this Act.
(3C) Where the security furnished by a dealer under sub-section
(2A) or subsection (3A) 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.
(3D) 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 a dealer, -
(a) for realising any amount of tax or penalty payable by the
dealer;
(b) if the dealer is found to have misused any of the forms
referred to in subsection (2A) or to have failed to keep them in
proper custody :
PROVIDED that no order shall be passed under this sub-section
without giving the dealer an opportunity of being heard.
(3E) Where by reason of an order under sub-section (3D), 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.
(3F) The authority issuing the forms referred to in sub-section
(2A) may refuse to issue such forms to a dealer who has failed
to comply with an order under that subsection or sub-section
(3A), or with the provisions of sub-section (3C) or sub-section
(3E), until the dealer has complied with such order or such
provisions, as the case may be.
(3G) The authority granting a 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, if it is not required for
the purposes of this Act.
(3H) Any person aggrieved by an order passed under sub-section
(2A), subsection (3A), sub-section (3D) or sub-section (3G) may,
within thirty days of the service of the order on him, but after
furnishing the security, prefer, in such form and manner as may
be prescribed, an appeal against such order to such authority
(hereafter in this section referred to as the ?appellate
authority?) as may be prescribed:
PROVIDED that the appellate authority may,
for sufficient cause, permit such person to present the appeal,
-
(a) after the expiry of the said period of thirty days; or
(b) without furnishing the whole or any part of such security.
(3I) The procedure to be followed in hearing any appeal under
sub-section (3H), and the fees payable in respect of such
appeals shall be such as may be prescribed.
(3J) The order passed by the appellate authority in any appeal
under subsection
(3H) shall be final.
(4) A certificate of registration granted under this section
may-
(a) either on the application of the dealer to whom it has been
granted or, where no such application has been made, after due
notice to the dealer, be amended by the authority granting it if
he is satisfied that by reason of the registered dealer having
changed the name, place or nature of his business or the class
or classes of goods in which he carries on business or for any
other reason the certificate of registration granted to him
requires to be amended; or
(b) be cancelled by the authority granting it where 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 under sub-section (3A) or with the provisions of
sub-section (3C) or sub-section (3E) or has failed to pay any
tax or penalty payable under this Act, or in the case of a
dealer registered under sub-section (2) has ceased to be liable
to pay tax under the sales tax law of the appropriate State or
for any other sufficient reason.
(5) A registered dealer may apply in the prescribed manner not
later than six months before the end of a year to the authority
which granted his certificate of registration for the
cancellation of such registration, and the authority shall,
unless the dealer is liable to pay tax under this Act, cancel
the registration accordingly, and where he does so, the
cancellation shall take effect from the end of the year.