(1) No person liable to pay tax under section 3 or section 4, as the case may be, of this Act shall sell or purchase goods unless he has obtained and is in possession of a valid certificate of registration:

Provided that any dealer not liable to pay tax under this Act may also apply for grant of a certificate of registration:

Provided further that no application for registration from a person to whom the first proviso hereto applies shall be accepted unless the applicant furnishes, along with the application for registration, security, in such form and manner as may be prescribed, equivalent to ten thousand rupees.

(2) Every person, referred to in sub section (1), shall apply for the grant of certificate of registration to the prescribed authority in the prescribed manner and the prescribed authority, shall, after verifying that the application has been duly filled in, grant certificate of registration in the manner as may be prescribed:

Provided that dealers registered under the Bihar Finance Act, 1981, (Bihar Act 5 of 1981), as it stood before its repeal by section 94, shall be deemed to be dealers registered under this Act and such dealers shall be granted, a certificate of registration within such time and in the manner as may be prescribed and such dealers may sell or purchase goods till such time as the certificate of registration is granted to them:

Provided further that a dealer, who exclusively sells or purchases, goods mentioned in Schedule I, shall not be liable for registration.

Provided also that if the dealer applies for grant of certificate of registration in the prescribed manner and that the application is duly filled in, as aforesaid, he shall be deemed to be in possession of a valid certificate of registration, from the date so applied, for the purposes of exercising all rights and performing all duties or bearing all liabilities under this Act or the rules made thereunder.

(3) Every dealer registered under sub-section (1) of Section 7 of the Central Sales Tax Act, 1956 (74 of 1956), shall apply for and obtain a certificate of registration, notwithstanding whether such dealer is not liable to pay tax under this Act.

(4) Where the prescribed authority, at any time after the grant of the certificate of registration, is satisfied upon an inquiry, that the particulars mentioned in the application are incorrect or the applicant has suppressed or misrepresented certain material facts, he shall, after giving the applicant an opportunity of being heard, and after recording reasons therefor, cancel the certificate of registration granted to him.

(5)(1) The certificate of registration shall be deemed to be inoperative-

(a) in case of any business in respect of which a certificate of registration has been issued to a dealer under this Act is discontinued or in the case of transfer of whole business by a dealer, the transferee already holding a certificate of registration under this Act, with effect from the date of discontinuance or as the case may be, transfer of the business;

(b) in case of an incorporated body has been wound up or it otherwise cease to exist or the owner of a proprietorship business dies leaving no successor to carry on the business or in case of a firm or association of persons, it is dissolved or a delaer has ceased to be liable to tax under this Act, notwithstanding the fact that the order of suspension is passed or not.

(2) If a dealer has failed to file return for twelve consecutive months under this Act or has failed to pay the tax due for twelve consecutive months under the provisions of this Act or discontinues his business and has failed to furnish information regarding such discontinuing or has failed to inform the changes in his business if any; the competent authority may at any time, for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, suspend his certificate of registration from such date as may be specified by him.

(3) During cancellation proceedings under Section-20, where the registering authority is satisfied that the dealer will succeed in causing revenue loss, pending action for cancellation under Section-20, it may, after assigning reasons therefore, suspend the registration certificate by passing an order in writing, for the period during which the proceedings are pending:

Provided that if the dealer, by furnishing adequate security to the satisfaction of the registering authority, satisfies that revenue loss, if any, shall be made up by him, the registering authority may revoke the suspension of registration certificate.

(4) where a dealer, whose certificate of registration is suspended for the failure of any of the requirements specified in sub-section(5)(1), fulfils the requirements, the competent authority shall, by an order in writing withdraw the suspension order from such date as may be specified therein.

(5) the dealer whose certificate of registration is suspended under sub-section(5) shall not be entitled to claim input tax credit during the period of suspension of registration.

(6) If an order of suspension or cancellation is passed under this section and is set aside as a result of an appeal or other proceedings under this Act, the certificate of registration of the dealer shall be restored and he shall deemed to be treated as if his registration was not suspended or cancelled.

(7) Suspension of a certificate of registration shall not affect the liability of any dealer to pay tax, penalty or interest due for any period till the date of such suspension and which has remained unpaid or is assessed thereafter.

(8) The competent authority shall publish the particulars of dealers whose certificate of registration has been suspended under the provisions of this Act.

(6)(a) No transporter, carrier or transport agent or railway container contractor or courier shall operate its transport business in the State relating to taxable goods without being registered with the registering authority in such manner as may be prescribed.

(b) A transporter or carrier or transporting agent or railway container contractor or courier already operating transport business in the State relating to taxable goods shall apply to registering authority for registration in the prescribed manner.

(c) If a transporter or carrier or transporting agent or railway container contractor or courier carries or transports any taxable goods in contravention of the provisions of this Act or the Rules made thereunder, his resignation shall be liable to be cancelled or suspended for such period as may be determined by the registering authority after giving him a reasonable opportunity of being heard.

(d) Every transporter or carrier or transporting agent or railway container or courier contractor operating its transport business shall maintain such records as may be prescribed.

(e) No taxable goods shall be delivered by the transporter or carrier of transporting agent or railway container contractor or courier unless the prescribed requirements have been complied with.