Acquisition
Japhet's Folly Towers, visited during the quest Rise in the East, lowest level of the second tower, on a haystack in the central room, across from the room where Japhet's corpse lies.
Note
- Although it is shown on Skyrim's world map, Japhet's Folly actually is a separate worldspace which is inaccessible before and after the quest. Make sure to grab the item while you're there.