Prompt sales tax registration for small-scale units; additional security is a post-registration safeguard, not a threshold condition.

Registration applications from small-scale industrial units under the Kerala General Sales Tax Act and the Central Sales Tax Act had to be considered promptly and with a rational approach, and the authority was required to act on the applications without avoidable delay. Insistence on additional security before registration was not justified as a threshold condition; such security could be considered only after registration, when dealings could be assessed. The authority retained power to protect revenue, but that safeguard was to operate post-registration. The applications were directed to be examined forthwith, with appropriate action for issuance of registration certificates within one month.

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Issues: (i) Whether the petitioners were entitled to prompt issuance of registration certificates under the Kerala General Sales Tax Act, 1963 and the Central Sales Tax Act, 1956. (ii) Whether insistence on additional security and other safeguards before registration was justified.

Issue (i): Whether the petitioners were entitled to prompt issuance of registration certificates under the Kerala General Sales Tax Act, 1963 and the Central Sales Tax Act, 1956.

Analysis: The applications concerned small-scale industrial units seeking registration. Reference was made to the relevant circulars and to the principle that registration is not to be delayed by avoidable insistence on conditions not warranted at the threshold. The Court also noted that a rational approach is expected from the registering authority.

Conclusion: The petitioners were entitled to immediate consideration of their applications for registration certificates.

Issue (ii): Whether insistence on additional security and other safeguards before registration was justified.

Analysis: Section 14 of the Kerala General Sales Tax Act, 1963 contemplates additional security when required, but the Court observed that such stage would arise after registration and after an assessment of dealings. At the same time, the authority was not denuded of power to protect revenue, and the relevant circulars concerning dealers in packing cases, timber, and small-scale industrial units were noticed for that purpose.

Conclusion: Additional security could be considered only after registration, and the authority was directed to act on the applications without delay while keeping the revenue interest in view.

Final Conclusion: The petitions were disposed of with a direction to the respondent to examine the applications forthwith and take appropriate action for issuance of registration certificates within one month.

Ratio Decidendi: Registration applications of small-scale units must be processed with a rational approach, and additional security under the sales tax law is a post-registration safeguard rather than a pre-registration condition.

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