Compulsory Central Sales Tax registration cannot be replaced by section 7(2) registration; penalty applies for non-compliance.

Registration under section 7(2) of the Central Sales Tax Act, 1956 does not satisfy the compulsory registration requirement under section 7(1) for a dealer liable to Central Sales Tax on inter-State . Section 7(1) applies where registration is mandatory, while section 7(2) operates in a different field and permits registration even without such liability. Because the two provisions serve distinct purposes, obtaining registration under section 7(2) is not compliance with section 7(1). Failure to apply for and obtain the mandatory registration therefore attracts the statutory penalty under section 18(6) of the M.P. General Sales Tax Act, 1958, and the reference was answered in the negative.

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Issues: Whether registration under section 7(2) of the Central Sales Tax Act, 1956 is sufficient to avoid penalty under section 18(6) of the M.P. General Sales Tax Act, 1958 for failure to apply for and obtain registration under section 7(1) of the Central Sales Tax Act, 1956.

Analysis: Section 7(1) applies to a dealer liable to pay tax under the Central Sales Tax Act, 1956 and requires compulsory registration where the dealer carries on inter-State trade. Section 7(2) operates in a different field and permits registration even where the dealer is not liable under the Central Act. The two provisions serve different purposes, and registration under section 7(2) cannot be treated as compliance with section 7(1). Failure to obtain the mandatory registration attracts the statutory penalty.

Conclusion: Registration under section 7(2) is not sufficient to exclude liability to penalty for failure to register under section 7(1); the reference was answered in the negative.

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