Section 24(7) in The M.P. Vanijyik Kar Adhiniyam, 1994
(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.
