272. Manner of issue of clearance certificate to dealers for purposes other than that of rule 273

(1) Where a dealer required a clearance certificate under sub-section (1) of section 94 for purposes, other than the purpose of receiving payment a contractee without deduction of any amount at source for execution of a works contract under section 38, such dealer shall, make an application in Form 58 in duplicate containing therein a declaration in terms of clause (i), clause (ii), and clause (iii), of that sub-section, duly verified and signed to the appropriate assessing authority with a prayer to issue a clearance certificate to him for the purposes and in the manner referred to in that sub-section.

(2) If the appropriate assessing authority or the authority referred to in rule 274 is satisfied that the application is in order and the declaration made by a dealer in his application under sub-section (1) of section 94, is correct, such authority shall, within fifteen days from the date of receipt of such application, issue to such dealer a clearance certificate in Form 58 in accordance with sub-section (1) of that section and send the clearance certificate to such dealer ordinarily by post or through courier service.

(3) A clearance certificate issued under sub-rule (2) shall be valid for twelve months from the date of order for issuing such certificate and the period of validity shall be specified in such clearance certificate over the signature and seal of the appropriate assessing authority.

(4) A copy of the clearance certificate so issued shall be retained by the appropriate assessing authority for his record.

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