(1) If the senior joint commissioner or the joint commissioner or the deputy commissioner, as the case may be, is satisfied that a registered dealer has furnished correctly all information in the application referred to in rule 184, and that such dealer has complied with the requirements of the provisions of the Act and the rules for the purpose of clause (a), or clause (c), as the case may be, of sub-section (1) of section 116, and such registered dealer is eligible to enjoy the deferment of payment of tax or remission of tax under clause (a), or clause (c) of section 118, the senior joint commissioner or the joint commissioner or the deputy commissioner, as the case may be, shall grant a certificate of eligibility in Form no. 77 to such dealer.

(2) The certificate of eligibility granted under sub-rule (1) shall, subject to the provisions of the rules in this Chapter, be valid for a period not exceeding twelve months from the appointed day.

(3) When the senior joint commissioner or the joint commissioner or the deputy commissioner is satisfied that the information furnished in the application referred to in rule 184 is not correct and complete, or that the dealer has not complied with the requirements of the provisions of the Act and the rules as mentioned in sub-rule (1), or that the dealer is not entitled to enjoy the benefit of deferment of tax or remission of tax under clause (a), or clause (c), as the case may be, of sub-section (1) of section 118, he shall reject the application for reasons to be recorded in writing:

Provided that before such application is rejected, the dealer shall be given a reasonable opportunity of being heard.