(1) Where an Eligibility Certificate has been recommended to an Eligible Unit by the implementing agency under any of the Package Scheme of Incentives declared by the State Government, such Eligible Unit may apply for grant of Certificate of Entitlement or, as the case may be, Identification Certificate to the Commissioner.

(2) Subject to the provisions of this Act, and any rules that may be made in this behalf, the Commissioner shall, if the Eligible Unit satisfies such further requirements as may be prescribed, issue, subject to such conditions, as may be prescribed, to the unit a Certificate of Entitlement or, as the case may be, Identification Certificate.

(3)(a) An invoice issued by a Mega Unit holding a valid Identification Certificate granted to it, by the Commissioner, shall, in respect of the goods other than declared goods covered by the Eligibility Certificate contain a declaration as prescribed under the rules made in this behalf.

(b) An invoice issued by the immediate purchaser or, as the case may be, the subsequent purchaser, shall in respect of the sale of the goods, other than the declared goods which are originally manufactured by a Mega Unit holding valid Identification Certificate, contain a declaration as prescribed under the rules made in this behalf.

(4) Where-

(a) a Mega Unit to whom an Identification Certificate is granted under the Package Scheme of Incentives-2001 or, as the case may be, Package Scheme of Incentives-2007; or

(b) an immediate purchaser or, as the case may be, the subsequent purchaser who has purchased the goods which are originally manufactured by the Mega Unit to whom an Identification Certificate is issued by the Commissioner,

has failed to incorporate a declaration as prescribed under the rules made in this behalf, in respect of the sales on which the said Unit has claimed Industrial Promotion Subsidy, the Commissioner shall, after giving a reasonable opportunity of being heard, by order in writing impose upon him, in addition to any tax payable by him, a penalty equal to the amount of tax contained in the said invoice.