(1)An application for grant of a recognition certificate shall be made in Form 10 to the Registering Authority and shall be signed by the registered dealer and verified in the manner provided in the said form.(2)(a)On receipt of the application under sub-rule (1) the Registering Authority shall within a period not exceeding seven days require the applicant to furnish evidence in support of the particulars given in the application. If on the basis of the evidence furnished, the Registering Authority is satisfied that the applicant is eligible for holding a recognition certificate, it shall after recording the reasons therefor, grant the applicant a recognition certificate in Form 11 not later than fifteen days of the date of receipt of the application.(b)If the Registering Authority is satisfied that the registered dealer is not eligible to hold the recognition certificate, it shall, after giving the applicant a reasonable opportunity of being heard, reject the application and send an intimation thereof to him within fifteen days from the date of order of rejection.(c)The recognition certificate granted under clause (a) shall be valid from the date of application.(3)(a)The Registering Authority shall specify only those raw materials and/or incidental goods in the recognition certificate in respect of which the dealer is found eligible to purchase them in accordance with the provisions of clause (b) of sub-section (2) of Section 9.(b)The recognition certificate granted to a registered dealer shall ordinarily be valid till the permanent registration certificate issued to him under Section 22 or Section 23, as the case may be, remains in force and ceases to be in force from the date, such registration certificate ceases to be in force.(4)Where the registering authority has reasons to believe that a registered dealer has committed breach of this rule or defaulted in the payment of tax due or the circumstances on the basis of which the recognition certificate issued to the dealer does not exist, it may, notwithstanding anything contained in sub-rule (3), after giving the dealer a reasonable opportunity of being heard, cancel the recognition certificate granted to the dealer.(5)A copy of the order cancelling the recognition certificate under sub-rule (4) shall be sent to the dealer within fifteen days from the date of order of cancellation.(6)The provisions of Rules 10,11,12,13,14,15 and 16 shall mutatis mutandis apply to the recognition certificate issued under clause (b) of sub-rule (2).
