44.   Manner of issue of clearance certificate to a dealer or person.—

(1) Where a dealer or person requires a clearance certificate, such dealer shall, make an application in Form-63 in duplicate containing therein a declaration regarding position of submission of returns, payment of due taxes, payment demanded taxes, interest and penalty under the Act, position of any litigation cases lying before the Appellate Authority, Appellate Tribunal as the case may be and having the same duly verified and signed to the Prescribed Authority, with a prayer to issue a clearance certificate to him for the purpose (s).

(2) If the Prescribed Authority is satisfied that the application is in order and the declaration made by a dealer or person in his application is correct, such authority shall, within seven days from the date of receipt of such application, issue to such dealer or person a clearance certificate in Form-63 send the clearance certificate to such dealer or person ordinarily by post or through courier service.

(3) A clearance certificate issued under sub-rule (2) shall be valid for the period specified in such clearance certificate over the signature and seal of the Prescribed Authority.

(4) A copy of the clearance certificates so issued shall be retained by the Prescribed Authority for his record.

(5) Where the Prescribed Authority does not issue a clearance certificate to a dealer or person under sub-rule (2), such authority shall, after giving the dealer an opportunity of being heard, reject his application within seven days from the date of receipt of such application for reasons recorded there-for and intimate him in writing accordingly.