(1) Every contractee liable to deduct the amount towards tax under sub-section (1) of section 40, shall have a place of business in West Bengal and shall enrol himself with the appropriate enrolling authority. Save as otherwise provided in rule 46XC, a contractee shall make an application in Form 90 for enrolment with the appropriate enrolling authority, within thirty days from the date of coming into force of this rule or within thirty days from the date of commencement of his intra-State works contract whichever is latter.

Explanation.- Where a contractee has more than one division or branch in West Bengal, he shall make one application DDO-wise for each such division or branch

(2) When the appropriate enrolling authority as defined in clause (ddd) of rule 2, is satisfied that the contractee has correctly given all the requisite information in his application required under sub-rule (1) and the application is in order, he shall enroll such contractee and issue in favour of him a certificate of enrolment in Form 91 within thirty days from the date of receipt of the application.

3) The certificate of enrolment issued under sub-rule (2) to a contractee shall be kept at his place where he is situated.

(4) When there is any change in the particulars of the contractee or of the Drawing and Disbursing Officer (DDO) requiring an amendment in the certificate of enrolment issued under sub-rule (2), the holder of such certificate of enrolment shall make an application for this purpose within thirty days to the appropriate enrolling authority as defined in clause (ddd) of section 2, together with copy of the certificate of enrolment and evidence of such change and the appropriate enrolling authority may, if he is satisfied that the application is in order, make such amendments in the certificate of enrolment as may be deemed necessary.

(5) Any contractee may upon application obtain from the appropriate enrolling authority on payment of a fee of one hundred rupees, a duplicate copy of his certificate of enrolment which has been issued to him earlier under sub-rule (2) and which has been lost, destroyed or defaced.

(6) After being enrolled, if the contractee at any time finds that there is no possibility of any works contract as defined under clause (57) of section 2, to be executed by a contractor in near future, he shall make an application praying for cancellation of certificate of enrolment to the appropriate enrolling authority together with the copy of certificate of enrolment. The authority shall after being satisfied, within thirty days from the date of receipt of application cancel the certificate of enrolment.

Provided that where the appropriate enrolling authority does not dispose of such application for cancellation of the certificate of enrolment of the contractee within thirty days from the date of submission of the application, such certificate shall be deemed to have been cancelled immediately on the expiry of the period as aforesaid.

(7) When the appropriate enrolling authority as defined in clause (ddd) of rule 2, is satisfied that the contractee has ceased to exist at his declared place, he shall after giving the contractee an opportunity of being heard, cancel the certificate of enrolment with effect from the date of such order.

(8) If the contractee, who is required under sub-rule (1) to apply for certificate of enrolment, fails without any reasonable cause to make such application for enrolment within the time as referred to in sub-rule (1), such contractee shall be liable to pay penalty of a sum not exceeding one thousand rupees for each month of default or part thereof.

(9) Where it appears to the appropriate enrolling authority that a contractee is liable to pay penalty under sub-rule (8) for his failure to make his application for enrolment, he shall serve a notice in Form 4 upon such contractee directing him to appear in person or through his agent and to show cause on the date and at the time and place specified in such notice as to why such a penalty as proposed in the notice, shall not be imposed on him.

(10) The appropriate enrolling authority as defined in clause (ddd) of rule 2, shall fix a date for hearing ordinarily not less than fifteen days from the date of issue of such notice.

(11) The appropriate enrolling authority as defined in clause (ddd) of rule 2, may after hearing the contractee, by an order in writing, impose such amount of penalty as he deems fit and proper and shall serve a notice in Form 5 upon the contractee directing him to pay the amount of penalty so imposed specifying the date, not less than twenty days after the service of the notice, by which the payment shall be made and the date by which the receipted challan proving such payment shall be produced before the said authority.