12. Incidence of Tax :
(1) Subject to the provisions of the Act, every dealer –
(a) whose gross turnover of sales or purchases during the year immediately preceding the commencement of the Act exceeded the taxable limit shall be liable to pay tax on his sales or purchases, as the case may be, on or after the appointed day;
(b) who stands registered or is liable to be registered under the Jammu and Kashmir General Sales Tax Act, 1962 or the Central Sales Tax Act, 1956 shall be liable to pay tax on sales and purchases as the case may be on or after the appointed day; or
(c) to whom clauses (a) and (b) do not apply and -
(i) whose gross turnover first exceeds the taxable limit during any period of twelve consecutive months, shall be liable to pay tax on sales and purchases as the case may be on or after the appointed day with effect from the date immediately following the day on which his gross turnover first exceeded the taxable limit during a period of any twelve consecutive months; or
(ii) who has become liable to pay tax under the Act or the Central Sales Tax Act, 1956 or is registered as a dealer under the Act or the Central Sales Tax Act,1956 at any time after the commencement of the Act shall be liable to pay tax on sales and purchases as the case may be on or after the appointed day with effect from the date of registration or the date on which he becomes liable to pay tax, whichever is earlier.
(2) Any dealer who has become so liable to pay tax under the Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover does not exceed the taxable limit and his liability to pay tax under the Act shall cease on the expiry of the period specified hereinbefore.
(3) Any dealer who has ceased to be liable under sub-section (2) shall be again liable to pay tax under the Act with effect from the date his gross turnover again exceeds the taxable limit.
(4) For the purpose of the Act, taxable limit means in relation to any dealer who,
(5). For the purpose of calculating the gross turnover to determine the liability to pay tax under the Act:-
(6) Where by an order passed under the Act, it is found that any person registered as a dealer ought not to have been so registered, then notwithstanding anything contained in the Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.