(1) A dealer whose input tax credit at the end of the last quarter of any year exceeds the tax liability for such return period, he shall transmit to the Appropriate Assessing Authority an application in Form XXXV through an electronic system by using a system code availed from the Appropriate Assessing Authority requesting to carry forward of the excess input tax credit to the subsequent period:

Provided that the dealer shall not be required to transmit such application if the excess input tax credit does not exceed rupees two lakhs.

(2) The printed copy of the application transmitted under sub-rule (1), shall be signed and verified by dealer setting forth all the particulars as stipulated in the said Form and submit the same to the Appropriate Assessing Authority within thirty days from the date of filing the data electronically, which shall be officially acknowledged:

Provided that the dealer shall not be required to submit the printed copy of such application if the same is transmitted through electronic system by using digital signature.

(3) The period for deciding the said application by the Appropriate Assessing Authority shall commence from the date of furnishing the printed and signed copy of the said application and in case where the application is transmitted electronically by using digital signature, from the date of such transmission.

(4) Upon receipt of the application under sub-rule (1), the Appropriate Assessing Authority shall verify the correctness of the claim for carry forward of input tax credit to the subsequent year and inform the dealer about the amount that is allowed to be carried forward to the subsequent period:

Provided that before rejecting or reducing the amount in the claim for carry forward of input tax credit, the dealer shall be given an opportunity of being heard.