Rajasthan Sales Tax Act,1994
Section 18. Provisional registration
(1) Any person intending to establish a manufacturing unit may, notwithstanding that he is not liable to get registration under section 17, apply with a receipt of payment of fee of rupees one hundred to the authority competent to grant registration in the prescribed form for provisional registration.
(2) Where the said authority, after making such enquiry 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 in the prescribed manner from the date of the receipt of the application upon furnishing by such person a security as is specified in section 23.
(3) Every person who has been granted a provisional certificate of registration under this section, shall, so long as such certificate is in force, be liable to pay tax under this Act irrespective of his turnover.
(4) The provisional certificate of registration granted under this section shall remain in force for such period as may be allowed initially or extended subsequently or until such provisional certificate is endorsed under sub-section (5); and the provisions of sub-section (7) of section 17 shall, so far as may be, apply to such provisional certificate.
(5) The authority competent to grant registration or the assessing authority, as the case may be, may on an application in the prescribed form made by a person holding a provisional certificate, and on being satisfied that such person has started selling goods manufactured by him, record on the provisional certificate an endorsement in the prescribed form and on such endorsement being recorded, such certificate shall be deemed to be a certificate granted under section 17.
(6) Where, after affording reasonable opportunity of being heard, it is determined that a person who has been granted a provisional certificate of registration under this section and has purchased any plant and machinery, processing articles or raw material or any other goods at a concessional or reduced rate of tax or without paying any tax on the strength of any declaration furnished by him, has failed to start selling goods manufactured by him within the period allowed initially or extended subsequently, he shall be liable to pay the difference of amount of tax which could have been leviable on the purchase price of such plant and machinery, processing articles, raw materials and any other goods at the full rate if purchased on concessional or reduced rate of tax and the whole amount of tax if purchased without paying any tax on the strength of declaration, with interest at the rate of two per cent per month.