Section 6A(5) in The Jammu and Kashmir General Sales Tax Act, 1962
(5)If a person who has been granted a provisional certificate of registration under this section fails to start selling goods manufactured by him within the period specified in the certificate, he shall, if he has purchased raw-material, processing materials, machinery, plants, equipments, tools, spare parts, accessories, fuels and lubricants, be liable to pay as penalty equivalent to 10% of the landed cost of the goods so purchased without prejudice to the liability of the Sales Tax on the sale of these goods when it actually takes place.]
