Section 6A in The Jammu and Kashmir General Sales Tax Act, 1962
6A. [ Provisional Registration. [Section 6-A inserted by Act XVI of 1970.]
(1)Any person who intends to establish a business in the State for the purpose of manufacturing or producing goods of value exceeding fifteen thousand rupees per year [and has the approval of competent authority to establish such business] may, notwithstanding that he is not required to register himself under section 6, apply in the prescribed manner to the assessing authority for provisional registration under this Act.(2)If the assessing authority, after making such inquiries as it may consider necessary, is satisfied as to the bona fide intention of the person making the application, it may grant a provisional certificate of registration to such person furnishing such security as it may consider necessary and shall specify in such certificate the class or classes of goods as being intended for use as raw-material, processing material, machinery, plants, equipments, tools, spare parts, accessories, fuel and lubricants, directly in the manufacture of goods for sale.(3)Every person who has been granted a provisional certificate of registration under this section shall for so long as such certificate remains in force, be liable to pay tax under this Act.(4)A provisional certificate of registration granted under this section shall remain in force for such period as may be specified therein and the provision of sub-sections [(3) and (4) of section 6] [Inserted by Act XIIII of 1978, Section 6.] shall, so far as may be, apply to any such certificate of registration :[Provided that of a person to whom such certificate of registration has been granted is prevented by sufficient cause from manufacturing and selling goods before the expiry of the said period, the Assessing Authority shall on an application made in this behalf, extend the period of the enforcement of such certificate.] [Added by Act IX of 1982, Section 7.](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.]
