(1) A dealer who claims that any amount of his turnover should be exempted from tax on account of the goods being specified in Part E of Schedule II and for the sales made at the first stage of sale in the State under sub-section (2) of Section 9 of the Act, shall substantiate for such claim before the authority prescribed by producing the purchase order, if any, the original copy of the cash memoranda or bills issued to him and a true Declaration in writing from the selling dealer or his manager declared under Section 64 in Form JVAT 403 that the goods in question have already been subjected to tax on the first point of their sale in the state of Jharkhand.

(2) Any VAT dealer, who claims Input Tax Credit under sub-section (4) of Section 18 of the Act and his Output Tax payable requires the Input Tax Credit, for the sales made at the stage(s) under sub-section (1) of Section 9 of the Act, shall substantiate for such claim before the authority prescribed, by producing a true Declaration in writing, issued by the preceding VAT selling dealer, in Form JVAT 404 evidencing that the goods in question have already been subjected to Tax at the preceding stage of their sale in the State of Jharkhand.

(3) Registered dealers shall get the Declaration in Form JVAT 403 and JVAT 404 printed thereunder and shall issue such Forms from a bound book containing twenty five leaves in triplicate, duly perforated and such Forms shall bear printed serial number along with the name of the Printer in the Bold letters, or in the circumstances self-printed by the own computer, it shall be printed in Bold letters as "Computer Generated". In the case of "Self Printed" or "Computer Generated" the provisions of sub-section (9) of Section 60 shall apply. Before issue of the volume, the dealer shall get it authenticated by the In-charge of the Circle or any other officer of the Circle authorised in this behalf, where such dealer is registered.

Provided that the Prescribed Authority may refuse to authenticate such Declarations in Form JVAT 403 and JVAT 404, in the circumstances when there are any dues of admitted VAT payable or assessed VAT payable or Interest payable or Penalty payable under the Act or under the Repealed Act, or if the VAT registration certificate of the dealer has been suspended under rule 9, and also if the Prescribed Authority, is of the opinion that the registered VAT dealer is not complying the provisions of the Act and the Rules.

(4) Before furnishing Declaration to the purchasing dealer in Form JVAT 403 and JVAT 404, the selling dealer or any person authorized by him in his behalf, shall fill in all required particulars in the Form and shall also affix his signature in the space provided in the Form for this purpose. Thereafter, the counterfoil of the Form shall be retained by the selling dealer and the other two portions marked 'Original' and 'Duplicate' shall be made over by him to the purchasing dealer.

Provided the selling dealer shall issue one Declaration in respect to one purchasing dealer for the sales made during a year.

(5) The selling dealer shall also maintain, serially and chronologically, a complete account in a Register in respect of all Forms of Declarations printed and issued by him and also file a statement of Forms along with the Annual Return.

(6) The purchasing dealer shall also maintain serially and chronologically a complete account in separate Register in respect of the Forms of Declaration, received by him from the selling dealer.

(7) Every Declaration authenticated by the Prescribed Authority, shall be kept by him in safe custody and he shall be responsible for the loss, destruction, or theft of any such form and loss of Government revenue, if any, caused thereby.

(8) If any such authenticated Declaration, before it is issued, is signed and dispatched by the consignor, is lost, destroyed or stolen from his custody, the dealer shall report the fact to the Prescribed Authority within seven days from the date of such loss, destruction or theft, make appropriate entry in the "Remarks" column of the Register and take such other steps to issue public notice of loss, destruction, theft and in respect of each such Declaration, shall furnish to the Prescribed Authority, an indemnity bond in Form JVAT 122 against any possible loss to Government.

(9)(a) If a registered dealer being Manufacturer or the Importer of such goods sells such goods as specified in sub-section (2) of Section 9 and Notification issued thereunder, and recovers tax from its purchasing registered dealer at the full rate, on the Maximum Retail Price of such goods; he shall issue Form JVAT 410 to its purchasing registered dealer."

Provided, registered dealer shall get such Declaration in Form JVAT 410 printed himself and shall issue such Forms from a bound book containing twenty five leaves in triplicate, duly perforated and such Forms shall bear printed serial number along with the name and registration number of the Printer in bold letters, or in the circumstances self-generated by own computer or self printed in captive printing press, it shall be printed in bold letters as "Computer Generated" or "self printed". In the case of "Self Printed" or "Computer Generated" the provisions of sub-section (9) of Section 60 shall apply. Before issue of the volume, the dealer shall get it authenticated by the In-charge of the Circle or any other officer of the Circle authorised in this behalf, where such dealer is registered.

Provided further, the selling dealer shall issue one Declaration Form in respect of one purchasing dealer for the sales made during a year.

Explanation:- For the purpose of printing of declarations, the provisions of sub-rule (3) of rule 42 shall be followed.

(b) The registered dealer being reseller of such goods sold, as specified in sub-section (2) of Section 9 and Notification issued thereunder, and who recovers tax from its purchasing dealer at full rate, on the Maximum Retail Price, paid by him at immediately preceding stage, shall issue Form JVAT 411 to the purchasing dealer.

Provided, the selling dealer shall issue one Declaration in respect to one purchasing dealer for the sales made during a year.

Explanation:- For the purpose of printing of declarations, the provisions of sub-rule ( 3) of Rule 42 shall be followed.

(10) The aforesaid Declaration(s) Form shall not be transferable.