A registered dealer holding an unexpired certificate of eligibility for deferment of payment of tax or remission of tax issued under the previous Act shall, within one hundred and twenty days from the appointed day, apply to such Deputy Commissioner or Assistant Commissioner, as the Commissioner may, by an order in writing, authorise in this behalf, for fresh certificate of eligibility in Form no. 76 unless the certificate of eligibility issued under the previous Act is due to expire within two months from the appointed day, in which case, the said certificate issued under previous Act shall be deemed to be valid for the purposes of this Act and rules till the date of its expiry.

Provided that if the application in Form 76 is submitted by the registered dealer after one hundred and twenty days from the appointed day for issuing fresh certificate of eligibility, such authorised Deputy Commissioner or Assistant Commissioner may, on being satisfied with the reasons for delay in submitting such application, condone the delay and accept the application for deferment of payment 'of tax or remission of tax.