6-A. Provisional Registration

(1) Any person who intends to establish a business in the state for the purpose of manufacturing or producing goods of a 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 equipment, 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-section (3) and (4) of section 6 shall, so far as may be, apply to any such certificate of registration:

Provided that if 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.

(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-materials, processing, materials, machinery, plants, equipment's, 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.