12. Grant of Registration Certificate

(1) On the day, the application for grant of a registration certificate is received, the Registering Authority shall grant to the applicant a registration certificate in form 7.

(2) After the issue of the registration certificate, the Registering Authority or an official not below the rank of Commercial Tax Inspector authorised by him, shall, with a view to verify the correctness of the particulars given in the application, visit the place of business and ask for the applicant's accounts and require him to produce evidence and documents in support of the particulars given in the application. On verification of the accounts and the documents furnished to him, if the Registering Authority is satisfied that the particulars given in the application are incorrect or the applicant has misrepresented the facts, he shall proceed to cancel the registration certificate in accordance with the provisions of clause (c) or clause (e) of sub-section (4) of section 17. Such cancellation shall take effect from the date of issue of the registration certificate.

(3) The requirement to furnish the evidence and documents under sub-rule (2) shall be limited to the particulars given in the application in form 6 for grant of a registration certificate.