4. Exemption Licence

(a)(i) If a dealer is granted exemption from payment of tax under section 5 in respect of any goods or class of goods subject to the condition that he obtains exemption licence, he shall obtain such licence in Form ST-1 on an application made in Form ST-2 to the Assessing Authority within such period and in such manner, as may be specified in the notification under which such exemption is granted.

(ii) The licence fee, if any, payable under the said Notification shall be deposited in cash in the treasury and the treasury receipt of such fee shall be attached with the application.

(iii) The licence shall, subject to the conditions laid down in the said notification, be valid for the period of exemption and shall be renewed for a further period of exemption, if any granted, on payment of renewal fee, as may be specified therein and be deposited in cash in the treasury and the treasury receipt of such fee shall be attached with the application made in Form ST-3 for renewal of licence.

(iv) The licence shall be liable to be cancelled for contravention without a reasonable cause, of any of the conditions specified in the notification and such cancellation shall have effect from the date of such contravention provided that before it is cancelled, the Assessing Authority shall give the dealer a reasonable opportunity of being heard.

(v) The dealer shall maintain separate accounts in respect of sale of goods exempted from tax and he shall furnish annual return within the period specified in sub section (1) of section 7 of the Act along with the statement of quantity and value of the goods in the following form:-

a) Nature of goods.

b) Opening stocks.

c) Goods purchases/manufacured.

d) Goods sold; and

e) Closing stock.

(b) If a licensee under this rule also deals in the sale of goods liable to sales tax he shall obtain a Registration Certificate prescribed for such a dealer and shall maintain separate accounts in respect of goods covered by his licence or certificate.

(vii) The licence shall be non transferable provided that if the business owned by the dealer is transferred to any other person during the currency of the licence such other person shall subject to the conditions laid down in the Notification, be entitled to the grant of fresh licence for un-expired period without any additional fee on an application made by him to the Assessing Authority.

(viii) The Assessing Authority shall maintain a register of licence in Form ST-4.

Notwithstanding anything contained in sub rule (a)-

(i) The dealer who does not obtain the licence within the period fixed under the notification or whose licence is cancelled shall not be entitled to exemption and he shall be liable to assessment in accordance with the provisions of the Act.

(ii) The dealer who also deals in taxable goods shall obtain a certificate of registration in respect of the sale of such goods in accordance with rule 7.