(1)(a) When an application for registration under sub-section (1) or subsection (2) of section 7 of the Act is made electronically by a dealer within thirty days from the date of which he becomes liable to pay tax under the Act, and submitted the duly signed hard copy of the said form and produced required documents in original within seven working days from the date of making the application, the officer authorized to register the applicant shall grant the certificate of registration with effect from the date of such liability.

(b) The officer authorized to grant certificate of registration, where it appears necessary, for reasons to be recorded in writing, may conduct or cause to be conducted such inquiry to be completed within ninety days from the date of grant of the certificate of registration.

(c) The authority on the basis of such inquiry may allow the certificate of registration to continue or shall, after giving a reasonable opportunity of being heard, cancel the certificate of registration with effect from the date specified in that order.

(2)

(a) Omittted w.e.f. 22-01-2015.

(b) The officer authorised to grant a certificate of registration may, for the proper realisation of tax payable under the Act or for proper custody and use of forms referred to in clause (a) of the first proviso to sub-section (2) of section 6 or sub-section (1) of section 6A or clause (a) of sub-section (4) of section 8 of the Act, after giving him an opportunity of being heard, by an order in writing require a dealer to whom a certificate of registration has been granted to pay a reasonable security or additional security, as the case may be, by a specified date, which may be equivalent to tax estimated by him as being payable by the dealer for one year. The demand of security shall be made in form 1-A and the payment of security shall be in the manner laid down in sub-rule (3).

(3) Such security may be furnished by the dealer in any of the following manner namely :-

(i) by depositing with the authority to whom an application has been made under sub-section (1) or sub-section (2) of section 7 in National Savings Certificates for the amount of security fixed; or

(ii) by depositing such amount in Post Office Savings Bank and pledging the pass book deposited with the authority to whom an application is made under sub-section (1) or sub-section (2) of section 7; or

(iii) by depositing with the authority to whom an application is made under sub-section (1) or sub-section (2) of section 7, Government Securities for the amount enforced by the said officer; or

(iv) by depositing the amount of security in Government Treasury as fixed by the said authority.

(4)(a) An appeal under sub-section (3H) of section 7 shall be in Form XIV and shall be preferred to the appellate authority. It shall be accompanied by the order appealed against in original or by a certified copy thereof unless omission to produce such order or copy is explained to the satisfaction of the Appellate authority.

(b) An appeal under this rule shall bear court-fee stamp of rupee one and twenty-five paise only and shall either be presented by the appellant or his agent to the appellate authority or be sent to the said authority by registered post.

(c) The appellate authority shall before passing orders in an appeal give the appellant a reasonable opportunity of being heard.

(d) The procedure to be followed in hearing the appeal under this rule shall be the same as those prescribed by the Rules framed under the Orissa Value Added Tax Act, 2004.