3-B. Use of forms of certificate prescribed under sub-section (2) of section 6.—

(1) ³[In the case of a first sale falling under sub-section (2) of section 6 of any goods in the course of inter State trade or commerce which has either occasion the movement of goods from one State to another or has been effected by transfer of documents of title of such goods during their movement from one State to another), a certificate in Form E-1 appended to the Central Sales Tax (Registration and Turnover) Rules, 1957 (hereinafter referred to as the “said Form E-1”) shall be issued by the dealer effecting the sale (hereinafter in this rule referred to as “the first selling dealer”) to a registered dealer (hereinafter referred to as the “first purchasing dealer”) to whom he effects the sale.

(2) Before furnishing a certificate in the said Form E-1 the first selling dealer or any person authorised by him in this behalf, shall fill in all the prescribed particulars in the form and shall also affix his usual signature in the space provided in the form for this purpose. Thereafter the “Counterfoil” of the form shall be retained by the first seller and the other two portions marked “Original” and “Duplicate” shall be made over by him to the first purchasing dealer:

1 Added by G.N. STA. 1572/3701/72/M-2. dated 31-3-1973.

2. Substituted by G. N. No. STR. 1562/A-2316-XIII, dated 23-7-1964.

3. Substituted by G.N. No. STA. 1572/3701/72/M-2. dated 31-3-1973. w.e.f. 1-4-1973

4. These words were substituted for the words “sales tax officer” by G.N. CST-1399/CR-19/Tax-1. dated 10-11-2000

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(3) In the case of any sale effected by transfer of documents of title to the goods which is subsequent to a first sale falling under sub-rule (1), a certificate in Form E-II appended to the Central Sales Tax (Registration and Turnover) Rules. 1957 (hereinafter referred to as the “said Form E-II”) shall be issued by the selling dealer (hereinafter referred to as “the subsequent selling dealer”) to a registered dealer (hereinafter referred to as the “subsequent purchasing dealer”) to whom he effects the sale.

(4) Before furnishing a certificate in the said Form E-II, the subsequent selling dealer or any person authorised by him in this behalf shall fill in all the prescribed particulars in the form and shall also affix his usual signature in the space provided in it. Thereafter, the “Counterfoil” of the form shall be retained by the subsequent selling dealer and the other two portions marked “Original” and “Duplicate” shall be made over by him to the subsequent purchasing dealer:

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(5) (a) The First purchasing dealer who claims an exemption from tax under sub-section (2) of section 6 in respect of his subsequent resale of goods to another registered dealer by transfer of documents of title to the goods, shall, at the time when assessment is being made in his case by the assessing authority, produce before the assessing authority for verification the portions marked “Duplicate” and “Original” of the certificates in the said Form E-1 received by him from the first selling dealer. The assessing authority may retain the “Original” of such of the certificates as it may deem necessary.

(b) The subsequent purchasing dealer who claims exemption from tax under sub-section (2) of section 6 in respect of his subsequent resale of the goods to another registered dealer by transfer of documents of title to the goods shall, at the time when assessment is being made in his case by the assessing authority, produce before the assessing authority for verification, the portions marked “Duplicate” and “Original” of the certificates in the said Form E-II received by him from the subsequent seller. The assessing authority may return the “Original” of such of the certificates as it may deem necessary.

1. Proviso to Sub-rule (2) deleted, by G.N. CST-1399/CR-19/Tax-1, dated 10-11-2000, prior to its deletion it read as under:—

²[Provided that no single certificate in Form E-1 shall cover more than one transaction of sale, except in cases where the total amount of sales made in a financial year covered by one certificate is equal to or less than Rs. 1,00,000]

2. Substituted by G. N. of 31-10-1995.

3. Proviso to Sub-rule (4) deleted, by G.N. CST-1399/CR-19/Tax-1, dated 10-11-2000, prior to its deletion it read as under:—

²[Provided that no single certificate in Form E-II shall cover more than one transaction of sale, except in cases where the total amount of sales made in a financial year covered by one certificate is equal to or less than Rs. 1.00,000]