06 - Registration

No. It is specifically mentioned in rule 4(6) of Service Tax rules, 1994 that if a registered assessee transfers his business to another person, the transferee will get a fresh certificate of registration. In the case of Agarwal Bros. [1972 (3) TMI 30 - HIGH COURT OF MADRAS] it was held that, licence issued under the rules is personal to the licensee and therefore, the petitioners who are transferees of the factory from the former licensee can only be treated as new licensees after the relevant date that is 13-6-1962, mentioned in the second proviso to the notification. The petitioner's case that they have only applied for a renewal of the earlier licence held by their transferors cannot be accepted for the rules make it clear that the licence issued is personal to the grantee and that it is not transferable. In view of the provisions making the licence personal to the grantee, the transferee cannot be said be a licensee before 13-6-1962.

Service tax registration non-transferability requires transferee to obtain immediate fresh registration certificate upon business transfer. Service tax registration certificates are not transferable under rule 4(6) of the Service Tax Rules, 1994; upon transfer of business the transferee must obtain a fresh certificate and is to be treated as a new registrant rather than a continuation or renewal of the transferor's registration.