(1) A registered dealer who wishes to purchase goods from another such dealer on payment of tax at the rates applicable under the Act to sales of goods by one registered dealer to another, for the purpose specified in the purchasing dealer's certificate of registration, shall obtain from the Joint Commissioner, Deputy Commissioner Assistant Commissioner, the Superintendent or the Assistant Superintendent the form of declaration prescribed under sub-section (4) of Section 8 of the Central Sales Tax Act, 1956, and furnish it to the selling dealer. Before furnishing the declaration to the selling dealer, the purchasing dealer, or any person authorized by him in this behalf, shall fill in all required particulars in the form and shall also affix his signature in the space provided in the form for this purpose. Thereafter, the counterfoil of the form shall be retained by the purchasing dealer and the two other portions marked "Original" and "Duplicate" shall be made over by him to the selling dealer.

(2) The form of declaration referred to in sub-rule (1) shall be supplied to a registered dealer, to the extent actually required by him, on payment of a fee at the rate of Rs. 8 for every set of 25 forms. The dealer shall pay fee by depositing it into the Government treasury under the appropriate head of account. Where payment of the fee is made by depositing it into the Government Treasury the supply of the forms to the dealer shall be made on production of the receipt showing the payment into the Government treasury before the Deputy Commissioner or Joint Commissioner or Assistant Commissioner or Commercial Taxes Officer of the Circle:

Provided that if the registered dealer has at the time of making an application for supply of forms defaulted in furnishing any return or revised return, together with receipted challan or challans showing payment of tax due from him according to such return or revised return, the Joint Commissioner or Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer after giving him a reasonable opportunity of being heard may, for reason to be recorded in writing withhold the issue of such forms to him until such time as he furnishes such return or revised return together with such receipted challans, showing payment of tax due according to such return or revised return.

Provided further that the Joint Commissioner or Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer may withhold the issue of such Form to a registered dealer until such time as he pays any tax, penalty or interest outstanding against him under the VAT Act, 2005 or CST Act, 1956 or repealed Bihar Finance Act, 1981 etc.

(3) (a) A registered dealer who claims to have made a sale to another registered dealer shall, in respect of such claim, attach to the return in Form I, the portion marked "Original" of the declaration received by him from the purchasing dealer:

Provided that when goods are delivered in instalments against one purchase order and a declaration in Form C covering the entire order is furnished along with the return for one period, declaration need not be furnished along with the return for subsequent period, in respect of the same transaction, if a reference to previous return or declaration is given in a Statement furnished with subsequent returns.

(b) The selling dealer shall also maintain, serially and chronologically, a complete account in a register in Form III in respect of the forms of declaration received by him from the purchasing dealers.

(c) The assessing authority may, in its discretion, also direct the selling dealer to produce for inspection the portion of the declaration marked "Duplicate".

(4) No purchasing dealer shall give, nor shall a selling dealer accept, any declaration except in a forms obtained by the purchasing dealer, on application, from the Joint Commissioner or Assistant Commissioner, the Superintendent or the Assistant Superintendent and not declared obsolete and invalid by the Commissioner under sub-rule (10).

(5) Every form of declaration obtained from the Joint Commissioner or Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer by a registered dealer shall be kept by him in safe custody and he shall be personally responsible for the loss, destruction or theft of any such form or the loss of Government revenues, if any, resulting directly or indirectly from such loss, destruction or theft.

(6) Every registered dealer to whom any form of declaration is issued by the Joint Commissioner or Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer shall maintain, in a register in Form II, a true and complete account of every such form. If any such form is lost, destroyed, or stolen, the dealer shall report the fact to the Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer immediately, make appropriate entries in the remarks column of the register in form II, and take such steps for the issue of a public notice of the loss, destruction or theft as the Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer, may direct.

(7) Any unused form of declaration remaining in stock with a registered dealer on the cancellation of his certificate of registration shall be surrendered to the Joint Commissioner or Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer.

(8) No registered dealer to whom a form of declaration has been issued by the Joint Commissioner or Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer shall, either personally or through any other person, transfer the same to another person except for the purpose specified in sub-rule (1).

(9) A form of declaration of which the particulars are published by the Commissioner under sub-rule (9) shall not be valid for the purpose of sub-rule (1).

(10) The Commissioner shall publish in the Official Gazette the particulars of the form of declaration which is reported under sub-rule (5) to have been lost, destroyed or stolen or which, in the opinion of the Commissioner, are likely to be misused.

(11)(a) The Commissioner may by notification, declare that forms of declaration of a particular series, design or colour shall be deemed to be obsolete and invalid with effect from such date as may be specified in the notification.

(b) The Commissioner may furnish information in respect of forms of declaration declared to be obsolete and invalid under clause (a) of this sub-rule to other State Governments for publication in the Official Gazette.

(12) When a notification declaring forms of declaration of a particular series, design or colour to be obsolete and invalid is published under sub-rule (10), all registered dealers shall, on or before the date with effect from which the forms are declared obsolete and invalid, surrender to the Joint Commissioner, Deputy Commissioner or Assistant Commissioner or Commercial Taxes Officer all unused forms of that series, design or colour which may be in their possession and obtain in exchange such new forms as may be substituted for the forms declared obsolete and invalid:

Provided that new forms shall not be issued to a dealer until he has rendered a satisfactory account of the old forms issued to him and returned the unused ones, if any, to the Assistant Commissioner, the Superintendent or the Assistant Superintendent.