(1) Any dealer required to produce a tax clearance certificate under section 65 shall make an application in form 63 to the appropriate commercial tax officer or any other officer authorised by the commissioner in this behalf for grant of such certificate and shall obtain a written acknowledgment therefor from the said officer .

(2)(a) On receipt of the application, the appropriate commercial tax officer or any other officer authorised by the commissioner in this behalf shall grant a tax clearance certificate in form 64 to the dealer or reject the application within one month from the date of receipt of the application. An application for a tax clearance certificate shall be rejected, if the dealer is either in arrears of tax or has not furnished a return for any period.

(b) Where an application is rejected, the appropriate commercial tax officer or any other officer authorised by the commissioner in this behalf shall specify the amount of arrears outstanding against the dealer. If the arrears are paid, the tax clearance certificate shall be granted to the dealer. The certificate shall be prepared in duplicate. One copy shall be given to the dealer and the other copy shall be retained by the appropriate commercial tax officer or any other officer authorised by the commissioner in this behalf for his record. Where an application is rejected the appropriate commercial tax officer or any other officer authorised by the commissioner in this behalf shall immediately intimate this fact to the officer specified in serial number (7) of the application in form 63.

(3) The tax clearance certificate granted under clause (a) of sub-rule (2) shall be valid for a period of one year from the date of its issue.

(4) Where facility to pay any amount in instalments has been granted to a dealer under sub-section (7) of section 24 or where the recovery of any amount due has been stayed by any competent authority, such amount shall not be treated as an amount in arrears for the purpose of this rule unless the dealer has failed to pay any instalment due from him.