(1) An application for grant of a certificate of recognition under sub-section (5) of section 10-A, shall be made in Form. 3-B to the Registering Authority and shall be signed by the registered dealer and verified in the manner provided in the said Form.

(2) (a) On receipt of the application under sub-rule (1), the Registering Authority shall within a period not exceeding seven days require the applicant to furnish evidence in support of the particulars given in the application. If on the basis of the evidence furnished, the Registering Authority is satisfied that the applicant is eligible for holding a certificate of recognition, it shall after recording reasons, grant the applicant a certificate of recognition in Form 3-C not later than fifteen days of the date of receipt of the application.

(b) If the Registering Authority is satisfied that the registered dealer is not eligible to hold the certificate of recognition, it shall, after giving the applicant a reasonable opportunity of being heard, take appropriate decision. If the application is rejected, the Registering Authority shall send an intimation thereof to him within fifteen days from the date of order of rejection.

(c) The certificate of recognition granted under clause (a) shall be valid from,-

(i) the date of notification under sub-section (1) of section 10-A or the date of registration, whichever is later, if the application is made within thirty days from the publication of this notification;

(ii) the date of application, if the application is made after thirty days from the publication of this notification.

(3) The certificate of recognition granted to a registered dealer shall be valid till the registration certificate issued to him under section 17 remains In force and shall cease to be in force from the date, such registration certificate ceases to be in force.

(4) Where the registering authority has reasons to believe that a registered dealer has committed breach of this rule or defaulted in the payment of tax due or the circumstances on the basis of which the certificate of recognition issued to the dealer does not exist, it may, notwithstanding anything contained in sub-rule (3), after giving the dealer a reasonable opportunity of being heard, cancel the recognition certificate granted to the dealer.

(5) A copy of the order canceling the recognition certificate under sub-rule (4) shall be sent to the dealer within fifteen days from the date of order of cancellation.

(6) The provisions of rules 13, 14, 15, 16, 17, 18 and 19 shall mutatis mutandis apply to the certificate of recognition issued under clause (a) of sub-rule (2).

(7) A dealer who desires to claim deduction under sub-section (6) of section 10-A from his turn over, shall submit a true declaration in Form 3-D duly filled in and signed by the purchasing dealer within three months after the end of the period to which the declaration relates. A declaration in Form 3-D may cover all transactions of sales, which take place in a quarter of a financial year.