5.(1) Every dealer in scheduled goods who is, -

(a) registered under VAT Act; or

(b) liable to be registered under VAT Act, but not registered under the said Act,

shall get himself registered under this Act, in such manner and within such period as may be prescribed.

(2) Where a dealer, -

(a) registered under VAT Act is granted registration under this Act, the certificate of registration issued under VAT Act shall be the certificate of registration for the purposes of this Act and the Identification Number assigned to the dealer under VAT Act shall be the Identification Number of the dealer for the purposes of this Act; or

(b) not registered under VAT Act is granted registration under this Act, the registering authority shall issue to such dealer, a certificate of registration under this Act in such manner and in such form as may be prescribed and the certificate of registration so issued shall be assigned with an Identification Number and shall be effective from the date of filing of application for registration:

Provided that where any such dealer has more than one place of business inside the State, he shall declare one of such places as the principal place of business in the application and the registering authority shall issue to the dealer one certificate of registration in respect of such principal place of business:

Provided further that where the dealer does not declare his principal place of business in the application for registration, the registering authority, shall issue one certificate of registration in respect of any such place of business, as he deems appropriate.

(3) The registration granted under this Act to a dealer, who has been granted a certificate of registration under VAT Act, shall remain in force so long as his certificate of registration is valid under that Act.

(4) The certificate of registration granted under this Act to a dealer not registered under VAT Act, shall remain valid until it is cancelled under this Act.

(5) where certificate of registration of a dealer under VAT Act is amended, the certificate of registration of such dealer granted under clause (a) of subsection (1) shall be deemed to have been amended under this Act and Rules.

(6) If a dealer who has been granted registration under clause (b) of subsection (1) –

(i) sells or otherwise disposes of business or any part of his business or effects or comes to know of, any other change in the ownership of the business; or

(ii) changes his place of business or opens a new place of business; or

(iii) changes the name, style, constitution or nature of his business or effects any change in the class of goods in which he carries on business, he shall within the prescribed time inform the registering authority accordingly.

(7) If the registering authority, either on application from the dealer or otherwise after conducting or causing to be conducted such enquiry as he deems necessary, is satisfied that amendment of the certificate of registration is required, he shall amend the certificate of registration with effect from the date to be specified in that order:

Provided that the registering authority may, after giving the dealer a reasonable opportunity of being heard, reject an application for amendment for the reasons to be recorded in writing.

(8) Notwithstanding anything contained in sub-section (6), where any change alters the basic status of a dealer, such as, conversion of proprietorship concern to partnership firm or vice versa, dissolution of an existing firm and creation of a new firm, formation of a firm into a company or vice versa, a fresh certificate of registration shall be required to be obtained by the dealer.

(9) Where, –

(i) any business in respect of which a certificate of registration has been granted to a dealer under this Act is discontinued; or

(ii) in the case of transfer of business by a dealer, the transferee already holds a certificate of registration under this Act; or

(iii) an incorporated body is closed down or otherwise ceases to exist; or

(iv) the owner of a proprietorship business dies leaving no successor; or

(v) in case of firm or association of persons, if it is dissolved; or

(vi) a dealer is no longer liable to be registered under this Act;or

(vii) there is any other sufficient reasons so to do, the registering authority shall, after conducting or causing to be conducted such enquiry as he deems necessary, cancel the registration of the dealer who has been registered under clause (b) of sub-section (1) with effect from the prescribed date.

(10) Every dealer whose certificate of registration is cancelled shall surrender the certificate of registration within seven days from the date of receipt, by him, of the order of cancellation.

(11) In the event of death of a dealer being the proprietor of the business, the legal heir shall, within one month from the date of death of such proprietor, inform, in writing, the registering authority the date of death of such proprietor and produce evidence as may be required and the registering authority shall cancel the certificate of registration immediately.