(1) A declaration under section 394(2) certifying that the goods, being purchased referred to in Section 394(1) [Table: Sl. No. 1 to 5] are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No 127 and shall be verified in the manner indicated therein.

(2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax.

(3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner of Income-tax or Commissioner of Income-tax, one copy of the declaration referred to in sub-rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him.

(4) For the purposes of sub-rule (3), the Chief Commissioner of Income-tax or Commissioner of Income-tax means the Chief Commissioner or Commissioner to whom the Assessing Officer, having jurisdiction to assess the person referred to in sub-rule (2), is subordinate.