Section 24 in The M.P. Vanijyik Kar Adhiniyam, 1994
24. Provisional registration of intending manufacturers.
(1)Any person intending to establish a business in the State for the purpose of manufacturing goods for sale of value exceeding rupees fifty thousand a year and who is registered with the Industries Department of the State Government for establishing a small scale industrial unit in the State or who is issued a licence wherever necessary or has sent a memorandum of information to the Central Government to establish a new industrial undertaking in the State under the provisions of the Industries (Development and Regulation) Act, 1951 (No. 65 of 1951) may, notwithstanding that he is not liable for registration under Section 22 make an application to the Commissioner accompanied by a satisfactory proof of payment of registration fee of five hundred rupees in that behalf in the prescribed manner for grant of a provisional registration certificate under this Act.(2)On the day the application is received the said authority shall grant the applicant a provisional registration certificate in the prescribed form.(3)The provisional registration certificate granted under sub-section (2) shall take effect from the date on which the person had applied for registration and notwithstanding the provisions of Section 5 every person who has been granted a provisional registration certificate under this Section shall, during the period from such date till such certificate remains in force, be liable to pay tax under this Act.(4)A provisional registration certificate granted under this Section shall be in force for such period as may be specified therein and the provisions of sub-sections (8) and (10) of Section 22, shall, so far as may be, apply in respect thereto:Provided that the Commissioner on an application made by the holder of such certificate before the expiry of the period of validity mentioned in the certificate, may for reasons to be recorded in writing, extend the period specified in the provisional registration certificate by a further period not exceeding six months on each occasion.(5)Every person who has been granted a provisional registration certificate under this Section shall for the purpose of this Act, be deemed to be a registered dealer.(6)Where a person who has been granted a provisional registration certificate under this section starts manufacturing and selling of goods during the period the provisional registration certificate is in force, he shall get himself registered under Section 22 or Section 23 as the case may be, before the date on which the provisional registration certificate is due to expire and on the grant of the registration certificate under Section 22 or Section 23 as the case may be, which shall take effect from the date on which application has been made for registration, the provisional registration certificate shall cease to be in force as from such date.(7)If a person who has been granted a provisional registration certificate under this Section fails to start selling goods manufactured by him within the period specified in such certificate or within the period extended by the Commissioner, as the case may be, he shall, if he had purchased any goods for use as [raw material or incidental goods] [Substituted by M.P. Commercial Tax (Second Amendment) Act, 1996 for the words 'raw material', w.e.f. 1-4-95.] on payment of tax in accordance with the provisions of clause (b) of sub-section (2) of Section 9 be liable to pay as penalty an amount not less than the difference between the amount of tax on the sales of such goods at the full rate applicable thereto under sub-section (1) of Section 9 and the amount of tax paid under clause (b) of sub-section (2) thereof but not exceeding one and one quarter times the amount of tax at such full rate as the Commissioner may determine having regard to the circumstances of the case.(8)The provisions of this Section shall also apply to the Central Government or the State Government or public sector undertaking intending to establish any new industrial undertaking in the State.Explanation. - In this Section the expression 'Industrial Undertaking' shall have the meaning assigned thereto in clause (d) of Section 3 of the Industries (Development and Regulation) Act, 1951 (No. 65 of 1951).
