Section 7(2) CST registration qualifies for exemption where the notification broadly requires registration under the Act.

Registration under section 7(2) of the Central Sales Tax Act, 1956 satisfied the requirement of being registered under that Act for exemption under the notification issued under section 8(5), because the notification required registration under the State sales tax law and the Central Sales Tax Act without limiting eligibility to section 7(1). The SC held that section 7(2) registration is still registration under the Act, even though it is optional for dealers not otherwise liable, and the language of the notification was plain and unambiguous. The eligibility certificate also supported entitlement, so the respondent qualified for the exemption.

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Issues: Whether registration under section 7(2) of the Central Sales Tax Act, 1956 satisfied the requirement of being registered under the Central Sales Tax Act for availing exemption under the notification issued under section 8(5) of that Act, and whether the eligibility certificate was sufficient to establish entitlement to the exemption.

Analysis: The notification required the dealer to be registered under the State sales tax law and under the Central Sales Tax Act. The Court held that the language of the notification was plain and admitted of no ambiguity. A registration under section 7(2) is still a registration under the Central Sales Tax Act, though it is optional and available to dealers not otherwise liable under that Act. The notification did not confine eligibility to registration under section 7(1) only. On the facts, the respondent satisfied the requirements of the notification and the eligibility certificate supported the claim to exemption.

Conclusion: Registration under section 7(2) of the Central Sales Tax Act, 1956 was sufficient for the purposes of the exemption notification, and the respondent was entitled to the exemption.

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