Problem in CST registration

In order to get the benefit of concessional rate of tax on inter-State purchases, the class or classes of goods must be specified in the Certificate of Registration issued under the Central Sales Tax Act, 1956.

While issuing registration to dealers, the authorities in Assam rely on an online module for specifying the goods to be imported for different purposes. The registration form provided in the module requires that the registering authority select the class or class of goods from a dropdown list. Now all class or classes of goods cannot possibly be enumerated in a list. So whenever a dealer applies for registering some goods which is not specified in the online dropdown list, it is conveniently entered as “Others”. The worrying part of it is that when the residuary category is selected, no place is provided to specify what that “Others” denote. And so, that class of goods simply find mention in the Registration Certificate as “Others”

To a person examining that registration certificate with an intent to examine what goods are covered under the registration, that ‘Others’ may either denote -

a)      goods applied for in the registration but which do not find mention in the online drop down list; (both lists would not normally be available before him and hence he cannot possibly find out ); or

b)      all such goods which are not enumerated in the online list (which again will not normally be available to the reader); or

c)      any goods whatsoever (which will leave the reader in more than a spot of worry);

Add to it the fact that the online list, not being a statutory one, can change from time to time on the whims and fancies of administrators or programmers, the position of the examiner will indeed be very worrisome.

So if I am an outside dealer selling goods to a Assam Dealer, will I be applying concessional rates of tax if the registration certificate contains the vague term “Others”? If I am well aware of the penal consequences for violation of provisions of section 8, I will definitely play safe and deny concessional tax rate.

I therefore find no reason as to why proper amendments should not be carried out in the online module. An additional box which reads “If Others, Specify” will be more than sufficient. This will ensure that the registration certificate carries the class or classes of goods as per the requirements of the dealer seeking registration and as per the requirements of law.

Your honour, please.........................