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ACT AND ORDINANCES

THE ASSAM INDUSTRIES (SALES TAX CONCESSIONS) SCHEME, 1995

PART – I

1. NO. FTX. 78/91/235:— In exercise of the power conferred by Sub-Section (4) of Section 9, read with clause (1) of sub-section (3) of Section 74 of the Assam General Sales Tax Act, 1993 (Assam Act XII of 1993), hereinafter called the Act, the Governor of Assam is pleased to frame a scheme as detailed below granting relief by way of full exemption of sales tax, on the purchase of raw materials within the State of Assam by the eligible industrial units, situated within the State of Assam and also on the sale of the finished products, manufactured in such eligible units in the Ste of Assam or in the course of inter-State trade or commerce. This scheme shall be deemed to be in force with effect, from 1.4.91.

2. Definition of Eligibility

Following shall be the eligible industrial units for the purpose of this scheme:-

‘A’ A new industrial unit, having its registered office within the State of Assam, which has completed the final effective steps shall be an eligible industrial unit for the propose of this scheme.

An Industrial unit, which has completed all the initial effective steps on or after 1.4.91 shall be considered as a new unit.

(A) A new unit shall be deemed to have completed all initial effective steps, if all the following have been achieved:—

Effective possession of land of the site of the unit.

Registration of the firm or the company or the society or the trust with the appropriate authority.

Provisional Small Industries Registration/Secretariat Industrial Approval Registration or any other statutory registration with the appropriate authority.

Project report in respect of the industrial unit has been prepared.

Power for the industrial unit has been sanctioned.

Means of finance for the Industrial unit is completed including sanction of term loan.

An industrial unit shall be deemed to have completed the final effective steps, if all the following have been achieved:—

Disbursement of term loan to the full extent.

Completion of the installation of the plant & machinery.

Receipt of all relevant approvals and clearances from the appropriate authorities viz. pollution control clearance, Capital Goods clearance, Explosive substance clearance, Municipal Clearance, etc.

Connection of power service.

Allotment of raw materials, wherever applicable.

Sanction of working capital.

Commissioning of the plant.

Compliance with the criteria on the industrial unit’s employing the people of Assam.

(B) An industrial unit, having its registered office within the State of Assam, which is or was in production at any time prior to 1.4.91 undertaking expansion/ modernisation/ diversification to the minimum extent of 25% at the same location or at other place(s) of he State of Assam and with an additional employment at least by 10% and is in compliance with the criteria on the industrial unit’s employing the people of Assam shall be treated as an eligible industrial unit for the purpose of this scheme.

For the purpose of getting benefit under this scheme, the minimum extent of expansion/ modernisation/ diversification.

(C) An industrial unit, having its registered office within the State of Assam and declared as a relief undertaking by the Government of Assam under the provision of the Assam State Industrial Relief Undertaking (Special Provisions) Act, 1984 (Assam Act. No. VII of 1984), which is in compliance with the criteria on the industrial unit’s employing the people of Assam shall be treated as an eligible industrial unit for the purpose of this scheme.

Provided that any industrial unit of the categories ‘A’, ‘B’ or ‘C’ shall not be eligible for any benefit under this scheme for its own venture or joint venture, if it is a Public Sector Undertaking under the Government of India.

Provided further that the following categories of the industries shall not be eligible for any benefit under this scheme:—

1. Plywood veneer, Book Board, Block Door manufacturing unit.

2. Saw Mill.

3. Roller Flour Mills above 30 T.D.P.

4. Health Services including X-Rays and Pathological units.

5. General Nursing Home, Hospitals and Medical Research Centre.

6. Re-rolling Mills in all sub-divisions of Kamrup, Jorhat, Dibrugarh, Bongaigaon, Cachar and Tinsukia district.

7. Tourism sector including hotels & restaurants, etc.

8. Tea Industry excepting blending and packaging units in the Small Sector under management having to financial involvements or stake in an established Tea Garden or established company.

9. Weight Bridge.

10. Storage (except cold storage).

11. Transport sector.

12. Brick Manufacturing units.

13. Animal Husbandry sector of Poultry, Piggery, etc.

14. Galvanished sheets corrugating units.

3. Definition of ‘an industrial unit employing the people of Assam’:—

An industrial unit shall be deemed to have complied with the criteria on the industrial unit’s employing the people of Assam vide ‘A’ and ‘B’ above, provided it has in its employment at least 80% of its employees in the management cadre and at least 90% of its employees in the non-managerial cadre from amongst the people of the State of Assam.

Provided that in exceptional cases, where an industrial unit can prove to the satisfaction of the State Level Udyog Sahayak Committee vide Annexure-C, as the case may be, that persons with the required skill and expertise are not available with in the State of Assam, the relaxation of the above clause may be allowed by this State Level Udyog Sahayak Committee for a period to be determined by this Committee as deemed fit by it.

The certificate on the exact position of the industrial unit’s employing the people of Assam shall be obtained from the concerned District Employment Officer.

4. Procedure for applying, etc. for the grant of eligibility certificate:—

The industrial unit desiring to be treated as an eligible industrial unit for the purpose of this scheme shall apply as per formats specified for this purpose in FROM-IA, FORM-IB and FORM-IC vide Annexure-IA, IB or IC, as the case may be supported by all required documents to the specified authority viz., District Level Committee, Udyog Sahayak Committee of Directorate of Industries, Government of Assam or the State Level Udyog Sahayak Committee vide Annexures-A, B and C as the case may be, in reference to the category of the industrial unit. Every such application shall be considered by the specified authority. An application for the Eligibility Certificate shall be verified and signed in the case of —

(a) Individuals, by the proprietor of the industrial unit;

(b) An association of persons, by an adult member or the principal officer;

(c) A firm, by the managing partner or an adult partner of the partnership firm;

(d) A Hindu undivided or joint family, by the Karta, and adult member of the family or the manager;

(e) A company, by the Managing Director, Secretary or the Chief Executive of the company;

(f) Any Government Department, by the head of the office concerned.

The person making an application shall specify the capacity, in which the application is made, verified and signed.

In case of an industrial unit, having an investment upto Rs 10 lakhs on plant & machinery after expansion/ modernisation/ diversification, if any, shall be considered by the District Level Committee. The case of an industrial unit, having an investment on plant & machinery after expansion/ modernisation/ diversification, if any, above Rs 10 lakhs and upto to Rs 60 lakhs in case of a Small Scale Industrial unit and upto Rs 75 lakhs in case of an Ancillary unit shall be considered by the Udyog Sahayak Committee of the Directorate of Industries. Government of Assam. The case of an industrial unit, where total investment on plant & machinery after expansion/ modernisation/ diversification, if any, exceeds Rs 60 lakhs for a Small Scale Industrial unit and Rs 75 lakhs for an Ancillary unit shall be considered by the State Level Udyog Sahayak Committee. In considering the cases, the District Level Committee. Udyog Sahayak Committee of the Directorate of Industries, Government of Assam and the State Level Udyog Sahayak Committee, as the case may be, shall satisfy themselves, where all the required conditions and norms have been fulfilled by the industrial unit for being declared as an eligible industrial unit for the purpose of this scheme. While considering a case, these Committees shall make inquiries for the verification of all information and particulars in each case. In case an industrial unit fulfils all the conditions & norms for being declared as an eligible unit for the purpose of this scheme, the concerned Committee shall recommend for the grant of eligibility certificate in favour of he industrial unit for the purpose of this scheme. The eligibility certificate shall be granted as per the FORMs all Annexures-IIA, IIB and IIC, as the case may be, by the competent authority of the industries Department of the Government of Assam.

Such eligibility certificate shall be granted by the General Manager, District Industries Centre of the district concerned, if it is the case on an eligible industrial unit, whose total investment on plant & machinery after expansion/ modernisation/ diversification, if any, is upto Rs 10 lakhs. Such eligibility certificate shall be granted by the Director of Industries, Government of Assam, if it is the case of an eligible industrial unit, whose investment on plant & machinery after expansion/ modernisation/ diversification, if any, is above Rs 10 lakhs and upto Rs 60 lakhs in case of a Small Scale Industrial unit and up to Rs 75 lakhs in case of an Ancillary unit. Such eligibility Ltd., if it is a case of an eligible industrial unit, whose total investment on plant & machinery after expansion/ modernisation/ diversification, if any exceeds Rs 60 lakhs for a Small Scale Industrial unit and Rs 75 lakhs for an Ancillary unit.

5. Period of validity of the eligibility certificate:—

The eligibility certificate issued under the scheme shall be for a period of 7 years from the date of commencement of production of an eligible unit of the category ‘A’ or 7 yeas from the date of commencement of production after the expansion/ modernisation/ diversification by an eligible industrial unit of the category ‘B’. This period of 7 years shall stand reduced upto the date of closure of the eligible industrial unit of the category ‘A’ or category ‘B’, if the date of closure, if any, occurs prior to the expiry of the above mentioned period of 7 yeas. For an eligible industrial unit of the category ‘C’, the period of validity of the eligibility certificate under this scheme shall be limited up to the date of expiry of the period as is specified by the Government of Assam in the declaration in respect of this industrial unit, notified by the State Government under the provision of section 3 o the Assam State Industrial Relief Undertakings (Special Provisions) Act, 1984 (Assam Act No. VII of 1984).

If an industrial unit to which an eligibility certificate has been granted under this scheme closes down. It shall be the duty of this unit to report within 14 days from the date of such closure in writing to the local concerned Assessing Officer of the Finance (Taxation) Department of Government of Assam and the authority, which had issued the eligibility certificate to it. Simultaneously along with this report, it shall also surrender the original eligibility certificate to the authority, which had issued the same and it shall also surrender the certificate of authorisation and the unused declaration forms (as herein after stated) to the concerned Assessing Officer. For any lapse or violation on the part of the industrial unit, it shall be liable for all penal actions under the provisions of the Assam General Sales Tax Act, 1993 and other laws in force.

6. Issue of certificate of authorisation by the Assessing Officer:—

The application for the grant of certificate of authorisation shall be submitted as per the formal in FORM-III vide Annexure-III. It shall be verified and signed in the same way as in the case of application for the grant of eligibility certificate vide the first subpara of the para 4 of the PART-1 of this scheme.

On receipt of the application for the grant of certificate of authorisation from the owner(s) of an eligible industrial unit, which has been granted the eligibility certificate under this scheme from a competent authority, the Assessing Officer of the area shall examine as to the correctness of the particulars, furnished in the application and the documents, accompanying therewith and after making necessary checks, if the Assessing Officer is satisfied, that every information furnished in the application is based on the information contained in the eligibility certificate granted to the industrial unit concerned and any further information furnished in the application or in connection with it is correct, he shall grant and issue a certificate of authorisation in favour of the industrial unit concerned as per FORMs in IV-A, IV-B or IV-C as the case may be, vide Annexures IV-A, IV-B and IV-C within 30 days from the date of his receipt of the application from the industrial unit concerned.

The Assessing Officer shall withhold the issue of certificate of authorisation or refuse to grant it, if the application and the documents, accompanying therewith are not found to be in order and the conditions laid down for the purpose are not fulfilled or if any information furnished is not correct.

A register of the certificates of authorisation, issued by the Assessing Officer shall be maintained by him in the FORM-V specified vide Annexure-V. Every industrial unit, of the category ‘A’ or Category ‘C’, holding the certificate of authorisation and to whom the declaration forms have been issued shall maintain an account of such declaration forms as per the FORM-VI vide Annexure-VI.

7. Determination of increase in production of an industrial unit which undertakes expansion/ modernisation/ diversification:—

The actual production of the industrial unit during 365 consecutive working days of the unit, preceding the date of completion of its expansion/ modernisation/ diversification shall be called its base year production.

The actual production of the industrial unit after its expansion/ modernisation/ diversification shall be determined on an yearly basis, the first year being the 365 working days, following the date of commencement of production after the completion of the expansion/ modernisation/ diversification.

Increase in production of an industrial unit after the completion of expansion/ modernisation/ diversification shall be equal to the annual production after the completion of expansion/ modernisation/ diversification minus production during the base year divided by the base year production, expressed in percentage.

8. Procedure for the extension of the benefit under the scheme to an eligible industrial unit under the categories of ‘A’ or ‘C’ which obtains the certificate of authorisation on or after the date of issue of this notification dated the 16th August, 1995 with effect from the date of issue of this notification or thereafter.

(a) With regard to the purchase of permitted raw materials as stated in the certificate of authorisation, granted to the eligible industrial unit, following shall be the procedure:—

The holder of the certificate of authorisation in case of an eligible industrial unit of category ‘A’ or an eligible unit of category ‘C’ under this para 8 may, by paying Rs 25/- by Treasury Challan under the Major head 0040, etc. obtain from the Assessing Officer of the area a booklet of declaration form of 25 leaves as per FORM-VII at Annexure-VII, each leaf, consisting of original, duplicate and counterfoil parts, all parts being otherwise identical, for the purpose of claiming the benefit of sales tax exemption, while making purchase of the permitted raw materials for the use in the industrial unit.

At the time of assessment of sales tax at the end of a financial year, a seller of these raw materials, who sold the same on the strength of the above mentioned declaration form shall be entitled to the benefit of sales tax exemption involved in this declaration form.

If and when any industrial unit, holding the certificate of authorisation, after purchase of raw materials on the strength of the declaration form misuses in any way or leaves them unused beyond 12 months from the date of their purchase, it shall be liable to pay sales tax in respect of such goods at the price, at which the goods were sold to him at the same rate, at which sales taxes would have been leviable in the absence of such declaration. A certificate of authorisation shall be issued only in respect of such raw materials as are specified in the eligibility certificate, issued to an eligible industrial unit.

(b) With regard to the sale of the finished products, following shall be the procedure:—

The holder of the certificate of authorisation in the case of an eligible industrial unit of the category ‘A’ or category ‘C’ under this para 8 shall be competent to sell his finished products in the State of Assam or in the course of inter-State trade or commerce, for which he shall not be liable to pay sales tax under the Assam General Sales Tax Act, 1993. In the cash memorandum or the bill, issued to the purchaser, the holder of the certificate of authorisation shall clearly mentioned the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by assessing officer of the area at the time of assessment of his sales tax dues.

Provided that a holder of the certificate of authorisation as aforesaid in para 8 shall not collect sales tax on the sale of his finished products. In case he collects sales tax on such sales, the amount of sales tax so collected shall be deposited by him into the Government treasury.

9. Procedure for the extension of benefit under the scheme to an eligible industrial unit under the categories of ‘A’ or ‘C’ which obtains the certificate of authorisation on or after the date of issue of this notification dated the 16th August, 1995 but whose certificate of authorisation is in force with effect from a date prior to the date of issue of this notification dated the 16th August, 1995, but from or after 1.4.91:—

(a) (i) The benefit of sales tax relief as entitled under this scheme in the purchase of permitted raw materials, stated in the certificate of authorisation, granted to any of the above mentioned eligible industrial units of the category ‘A’ or category ‘C’ under this para 9 shall be allowed by way of refund to such eligible industrial unit on application, filed before the Assessing Officer of the area within 180 days from the date of issue of the certificate of authorisation. The refund shall be governed by the provision of section-30 of the Assam General Sales Tax Act, 1993 and Rules made thereunder.

(ii) During the period from or after the date of issue of this notification dated the 16th August, 1995, the benefit of sales tax relief as entitled under this scheme in the purchase of permitted raw materials stated in the certificate of authorisation granted to any of the above mentioned eligible industrial units of category ‘A’ or category ‘C’ under this para 9, shall be available to it in the same manner as laid down in the sub-para (a) of para 8.

(b) With regard to the sale of the finished products, the following shall be the procedure:—

The holder of the certificate of authorisation in the case of a eligible industrial unit of the category ‘A’ or category ‘C’ under this para 9 shall be competent to sell his finished products in the State of Assam or in the course of inter-State trade or commerce for which he shall not be liable to pay sales tax under the Assam General Sales Tax Act, 1993. In the cash memorandum or the bill issued to the purchaser, the holder the certificate or authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the assessing officer of the area at the time of assessment of his sales tax dues.

Provided that a holder of the certificate of authorisation as aforesaid in para 9 shall not collect sales tax on the sale of his finished products. In case he collects sales, the amount of sales tax so collected shall be deposited by him into the Government treasury.

10. Procedure for the extension of the benefit under this scheme to an eligible industrial unit of the category ‘B’, which obtains the certificate of authorisation on or after the date of issue of this notification, date the 16th August, 1995 with effect from the date of issue of his notification or thereafter:—

(a) With regard to the purchase of permitted raw materials, as stated in the certificate of authorisation, granted to an industrial eligible unit, of the category ‘B’ under this para 10, the following shall be the procedure:—

Under this scheme, an eligible existing industrial unit, undertaking expansion/ modernisation/ diversification, fulfilling all conditions and norms and holding the certificate of authorisation shall be entitled to the benefit of full sales tax relief in the purchase of permitted raw materials, stated in the certificate of authorisation, granted to it by the Assessing Officer of the area to such extent as are required for achieving the difference between actual annual production after the completion of the expansion/ modernisation/ diversification and the annual production during the base year.

The relief as aforesaid shall be allowed by way of refund to such eligible industrial unit on application, filed before the Assessing Officer of the area within 90 days from the date of expiry of the financial year to which the refund relates. The refund shall be governed by the provision of section-30 of the Assam General Sales Tax Act, 1993 and the Rules made thereunder.

Provided that until the determination of base year production or the annual production after the expansion/ modernisation/ diversification or both, the benefit under this scheme in respect of the raw materials shall not be admissible to an eligible industrial unit of the category ‘B’. After these are determined, the benefit to the extent as entitled under this scheme shall be allowed to the aforesaid eligible industrial unit under the category ‘B’ by way of refund on application filed by it before the Assessing Officer of the area within 90 days from the date of determination of those data. The refund shall be governed by the provision of section-30 of the Assam General Sales Tax Act, 1993 and Rules made thereunder.

(b) With regard to the sales of the finished products, the following shall be the procedure:—

Corresponding to the difference between the actual annual production after the completion of expansion/ modernisation/ diversification and the annual production during the base year, the holder of the certificate of authorisation I the case of an eligible industrial unit of the category ‘B’ shall be competent to sell his finished products in the State or in the course of inter-State Tax Act, 1993. In the cash memorandum or the bill, issued to the purchaser, the holder of the certificate of authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the Assessing Officer of the area at the time of assessment of his sales tax dues.

Provided that a holder of the certificate of authorisation as aforesaid in para 10 shall not collect sales tax on his sales from that portion of the finished products, which is declared eligible for sales tax exemption in the certificate of authorisation. In case he collects sale tax on such sales, the amount of sales tax so collected shall be deposited by him into the Government Treasury.

Provided further that until the determination of base year production or the annual production after the expansion/ modernisation/ diversification or both, the benefit under this scheme in respect of the finished products shall not be admissible to an eligible industrial unit category ‘B’ under this para 10.

11. Procedure for the extension of benefit under the scheme to an eligible industrial unit under the category ‘B’, which obtains the certificate of authorisation on or after the date of issue of this notification, dated the 16th August, 1995, but whose certificate of authorisation is in force prior to the date of issue of this notification date the 16th August, 1995, but from or after 1.4.91:—

(a) (i) Corresponding to the extent of requirements of the permitted raw materials (stated in the certificate of authorisation, granted to the aforesaid industrial unit), in reference to the difference between the actual annual production after the completion of the expansion/ modernisation/ diversification and the annual production during the base year, the benefit of sales tax, as entitled under the scheme shall be allowed by way of refund to such eligible industrial unit on application, filed before the Assessing Officer of the area within 180 days from the date of issue of the certificate of authorisation. The refund shall be governed by the provision section 30 of the Assam General Sales Tax Act, 1993 and rules made thereunder.

(ii) During the period from of after the date of issue of this notification date the 16th August, 1995, the benefit of sales tax relief as entitled under this scheme in the purchase of permitted raw materials stated in the certificate of authorisation granted to any of the above mentioned eligible industrial units of Category ‘B’ under this para 11 shall be available to it in the same manner as laid down in sub-para (a) of para 10.

Provided that until the determination of base year production or the annual production after the expansion/ modernisation/ diversification or both, the benefit under this scheme in respect of the raw materials shall not be admissible to an eligible industrial unit of the category ‘B’. After these are determined the benefit to the extent as entitled under this scheme in respect of the raw materials shall be allowed to the aforesaid eligible industrial unit under the category ‘B’ by way of refund on application filed by it before the Assessing Officer of the area within 90 days from the date of determination of these data. The refund shall be governed by the provision of Section-30 of the Assam General Sales Tax Act, 1883 and Rules made thereunder.

(b) With regard to the sale of the finished products, the following shall be the procedure:—

Corresponding to the difference between the actual annual production after the completion of expansion/ modernisation/ diversification and the annual production during the base year, the holder of the certificate of authorisation in the case of an eligible unit of the category ‘B’ under this para 11 shall be competent to sell his finished products in the State of Assam or in the course of inter-State trade or commerce, for which he shall not be liable to pay sales tax under the Assam General Sales Tax Act, 1993. In the cash memorandum or the bill issued to the purchaser, the holder of the certificate of authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the assessing officer of the area at the time of assessment of his sales tax dues.

Provided that a holder of the certificate of authorisation as aforesaid shall not collect sales tax on his sales from that portion of the finished products, which is declared eligible for sales tax exemption in the certificate of authorisation. In case he collects sales tax on such sales, the amount of sale tax so collected shall be deposited by him into the Government treasury.

Provided further that until the determination of base year production or the annual production after the expansion/ modernisation/ diversification or both, the benefit under this scheme in respect of finished products shall not be admissible to an eligible industrial unit of category ‘B’.

12. Raw Material

‘Raw material’ means any material or commodity capable of being used for the manufacture of any other product in an eligible industrial unit situated within the State of Assam, such raw material having been permitted in the eligibility certificate and accordingly permitted in the certificate of authorisation for use as raw material in the manufacture of goods for sale by this unit but shall not include the following commodities for the purpose of any benefit under this scheme:—

Tea,

Liquified Petroleum Gas,

Plywood and veneer,

Petroleum, Diesel Oil & Lubricants,

Timber in all forms and

Cement.

Note:— Coal, diesel, etc when used as fuel or energy in an industry shall not be treated as raw materials under this scheme.

PART – II

1. The Governor of Assam, is exercise of the powers, conferred by the Sub-section (5) of Section-8 of the Central Sales Tax Act, 1956 (Act 74 of 1956) hereinafter called the Central Act is further pleased to direct that the dealer having an eligible industrial unit falling under any of the categories of ‘A’, ‘B’ and ‘C’ in the State of Assam vide para 2 of PART-1 of this Government notification dated the 16th August, 1995, who is registered under the Central Act and to whom a certificate of authorisation under the scheme under this Government notification dated the 16th August, 1995 has been granted shall not be liable to pay tax under the Central Act in respect of the goods manufactured by him in this above mentioned eligible industrial unit in the State of Assam and sold in the course of inter-State trade or commerce during the period of validity of the certificate of authorisation, subject to the condition that such sale to any person outside the State of Assam is supported by proper documents of sales and also subject to the conditions and procedure as laid down in the clause 2 and clause 3 of this PART – II. This shall be deemed to have come into force with effect from 1.4.91.

2. Procedure for the extension of benefit under the scheme to an eligible industrial unit under the categories ‘A’ or ‘C’, which shall be admissible to those units, ‘which have obtained the certificate’ of authorisation on or after the date of issue of this notification, dated the 16th August, 1995 with effect from the date of issue of this notification or thereafter :—

The holder of the certificate of authorisation in case of an eligible industrial unit of the category ‘A’ or the category ‘C’ under this para 2 shall be competent to sell his finished products in the course of inter State trade or commerce as aforesaid in para 1, for which he shall not be liable to pay sales tax under the Central Act in respect of the goods, manufactured by him in the eligible industrial unit. In the cash memorandum or the bill, issued to the purchaser, the holder of the certificate of authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the Assessing Officer of the area at the time of assessment of his sales tax dues.

Provided that a holder of the certificate of authorisation, as aforesaid, shall not collect sales tax on the sale of his finished products in the course of inter-State trade or commerce. In case he collects sales tax on such sales, the amount so collected shall be deposited by him into the Government treasury.

3. Procedure for the extension of benefit under the scheme to an eligible industrial unit under the categories ‘A’ or ‘C’, which obtains the certificate of authorisation on or after the date of issue of this scheme, dated 16th August,1995, but whose certificate of authorisation is in force with effect from a date prior to the date of issue of this scheme, dated 16th August,1995 but from or after 1.4.91 :-

The holder of the certificate of authorisation in case of an eligible industrial unit of the category ‘A’ or category ‘C’ under this para 3 shall be competent to sell his finished products in the course of inter-State trade or commerce, as aforesaid in para 1, for which he shall not be liable to pay sales tax under the Central Act in respect of the goods manufactured by him in the eligible industrial unit. In the cash memorandum or the bill, issued to the purchaser, the holder of the certificate of authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the Assessing Officer of the area at the time of assessment of his sales tax dues:

Provided that the holder of the certificate of authorisation, as aforesaid in para 3, shall not collect sales tax on the sale of his finished products in the course of inter-State trade or commerce. In case he collects sales tax on such sales, the amount so collected shall be deposited by him into the Government treasury.

4. Procedure for extension of benefit under the scheme in respect of the Central Act to an eligible industrial unit of category ‘B’, which shall be admissible to those units, which have obtained the certificate of authorisation on or after the date of issue of this scheme dated 16th August, 1995 with effect from the date of issue of this scheme or thereafter :-

Corresponding to the difference between the annual production after the completion of expansion/ modernisation/ diversification and the average base year production as determined under the provision of this scheme dated 16th August,1995, the holder of the certificate of authorisation in case of an eligible industrial unit of the category ‘B’ under this para 4 shall be competent to sell his finished products in the course of inter-State trade or commerce as aforesaid in para 1, for which he shall not be liable to pay sales tax under the provisions of the Central Act. In the cash memorandum or bill, issued to the purchaser, the holder of the certificate of authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the Assessing Officer of the area at the time of assessment of his sales tax dues.

Provided that the holder of the certificate of authorisation, as aforesaid in para 4 shall not collect sales tax on the sales from that portion of the finished products which is declared eligible for sales tax exemption in the certificate of authorisation. In case he collects sales tax on such sales, the amount of sales tax so collected shall be deposited by him into the Government treasury.

Provided further that until the determination of the base year production or the annual production after expansion/ modernisation/ diversification or both, the benefit under this scheme in respect of the finished products shall not be admissible to an eligible industrial unit of category ‘B’ under this para 4.

5. Procedure for the extension of benefit under this scheme in respect of the Central Act to an eligible industrial unit of category ‘B’, which shall be admissible to those units, which have obtained the certificate of authorisation on or after the date of issue of this notification, dated the 16th August, 1995 but whose certificate of authorisation is in force with effect from a date prior to the date of issue of this notification, dated the 16th August, 1995 but from or after 1.4.91:—

Corresponding to the difference between the actual annual production after the completion of the expansion/ modernisation/ diversification and the annual production during the base year, the holder of the certificate of authorisation in the case of an eligible industrial unit of the category ‘B’ under this para 5 shall be competent to sell his finished products in the course  of inter-State trade or commerce, as aforesaid in para 1, for which he shall not be liable to pay sales tax under the provision of the Central Act. In the cash memorandum or bill, issued tender purchaser, the holder of the certificate of authorisation shall clearly mention the reference particulars of his certificate of authorisation and such copy of the cash memorandum or bill shall be verified by the Assessing Officer of the area at the time of assessment of his sales tax dues.

Provided that the holder of the certificate of authorisation, as aforesaid, shall not collect sales tax on the sales from that portion of the finished products, which is declared eligible for sales tax exemption in the certificate of authorisation. In case he collects sales tax on such sales, the amount of sales tax so collect shall be deposited by him into the Government treasury.

Provided further that until the determination of the base year production or the annual production after the expansion/modernisation or both, the benefit under this scheme in respect of the finished products shall not be admissible to an eligible industrial unit of category ‘B’ under this para 5.

PART – III

Termination of eligibility certificate as well as the certificate of authorisation for violation of or non-compliance with any of the conditions laid down in the scheme.

1. Under this scheme, the eligibility certificate is granted to an industrial unit which fulfils all eligibility conditions in terms of this Government notification and this eligibility certificate is for the purpose of grant of certificate of authorisation to enable the industrial unit to enjoy the benefit of sales tax exemption in terms of this scheme. Violation of any condition of the eligibility of information on any of these conditions being found false at any time after the issue of the eligibility certificate or failure on the part of the holder of the certificate of authorisation to comply with any condition, laid down in his certificate of authorisation or his failure to maintain the account of declaration form or to furnish any information required by his Assessing Officer with regard to the implementation of this scheme shall entail the termination of both the eligibility certificate and the certificate of authorisation.

2. For violation of any condition of eligibility in reference to which the eligibility certificate has been granted to an industrial unit as per the provision of this Government notification or if it is found at any time after the issue of the eligibility certificate to an industrial unit that the information, furnished by it on any of the conditions, which had led to the issue of the eligibility certificate to the unit is false, the competent authority of the Industries Department of the Government of Assam, which had issued the eligibility certificate shall be competent to terminate the eligibility certificate to the concerned eligible industrial unit after giving an opportunity of hearing to the holder of the eligibility certificate against such termination. In the event of any such termination, the competent authority shall intimate the fact of such termination forthwith to the concerned eligible industrial unit and the Assessing Officer concerned. On receipt of such intimation, the Assessing Officer shall cancel forthwith the certificate of authorisation, issued to that industrial unit and require it to surrender forthwith to the assessing Officer the unused declaration forms in FORM VII and the holder of the certificate of authorisation shall comply with this instruction from the Assessing Officer.

3. For failure of the part of a holder of the certificate of authorisation to comply with any condition, laid down in the certificate of authorisation, issued to him or for failure on his part to maintain the account of declaration form or to furnish any information, required by his Assessing Officer with regard to the implementation of this scheme as per this Government notification, the Assessing Officer, who had issued certificate of authorisation shall be competent to terminate the certificate of authorisation, after giving an opportunity of hearing to the holder of the certificate of authorisation against such termination. In the event of any such termination, the Assessing Officer shall intimate the fact of such termination forthwith to the concerned competent authority, who had issued the eligibility certificate to this industrial unit. On receipt of such intimation, the competent authority shall terminate forthwith the eligibility certificate, granted to the industrial unit and communicate the same to the industrial unit as well as the Assessing Officer.

4. If, after the termination of either the eligibility certificate or the certificate of authorisation or both, holder of the certificate of authorisation is found to have purchased raw materials free of sales tax under this scheme on the strength of his declaration in FORM VII, he shall be liable to pay in full that portion of the sales tax, which had not been paid by him at the time of the purchase of this said raw materials.

Secretary to the Government of Assam

Finance Department

ANNEXURE – A

DISTRICT LEVEL COMMITTEE

1. Deputy Commissioner of the district                                                     : Chairman

2. Addl. Director of Industries (Zonal)                                                       : Vice-Chairman

3. Deputy Commissioner of Taxes                                                           : Member

(in charge of Zone)

4. Lead Bank Officer                                                                                    : Member

5. Representative of The Assam Industries Development                  : Member

Corporation Ltd (in case of plains District/The

Assam Hills Small Industries Development Corporation

(in case of Hills District)

6. District Employment Officer of the District                                         : Member

7. Finance and Accounts Officer of the Office of the                             : Member

Deputy Commissioner of the District

8. General Manager, District Industries Centre of the District            : Member

The Chairman may co-opt expert(s) to specific meeting(s) of the Committee.

Function:

The Functions of the Committee shall be as follows:

(a) To scrutinise the applications and to recommend the deserving cases for the issue of Eligibility Certificate for the Sales Tax exemption to an industrial unit, having an investment upto Rs 10 lakhs (Rupees ten lakhs) in plant and machinery and to perform the duties, specified I the Government notification No. FTX. 78/91/235 dated the 16th August 1995 of the Government of Assam, Finance Department.

(b) The Committee shall meet as and when necessary and at least once in every quarter with the approval of the Chairman.

(c) At least five members including the Deputy Commissioner of the District, Deputy Commissioner of Taxes (in charge of Zone), District Employment Officer of the District and the General Manager, District Industries Centre of the District shall be necessary for any sitting of the committee.

ANNEXURE – B

UDYOG SAHAYAK COMMITTEE

OF THE DIRECTORATE OF INDUSTRIES, GOVERNMENT OF ASSAM

1. Commissioner & Security/ Secretary to the Government of Assam,           : Chairman

Industries Department

2. Secretary to the Government of Assam, Finance Department                     : Member

3. Commissioner of Taxes, Government of Assam                                           : Member

4. Managing Director, The Assam Industrial Development                              : Member

Corporation Ltd

5. Managing Director, The Assam Small Industrial Development                  : Member

Corporation (in case of Plains District)/

The Assam Hills Small Industries Development Corporation

(in case of Hills District)

6. Director of Employment & Craftsman Training Govt. of Assam                   : Member

7. Director of Industries, Government of Assam                                                 : Member

8. Additional Director of Industries (Udyog Sahayak), Govt. of Assam            : Member-Secretary

The Chairman may co-opt expert(s) to specific meeting(s) of the Committee.

Function:

The functions of the Committee shall be as follows:

(a) To scrutinise the applications and to recommend the deserving cases for the issue of Eligibility Certificate for the Sales Tax exemption to an industrial unit, having an investment of plant and machinery above Rs 10 lakhs (Rupees ten lakhs) and upto Rs 60 lakhs (Rupees sixty lakhs) in case of a SSI unit and upto Rs 75 lakhs (Rupees seventy five lakhs) in case of an ancillary unit and to perform the duties specified in the Government notification No. FTX. 78/91/235 dated the 16th August 1995 of the Government of Assam, Finance Department.

(b) The Committee shall meet as and when necessary and at least once in every quarter with the approval of the Chairman.

(c) At least six members including the Commissioner & Secretary/Secretary, Government of Assam Industries Department; Commissioner of Tax, Government of Assam; Director of Industries, Government of Assam, Director of Employment and Craftsman Training, Government of Assam and the Additional Director of Industries (Udyog Sahayak) Government of Assam shall be necessary for any sitting of the Committee.

ANNEXURE – C

STATE LEVEL UDYOG SAHAYAK COMMITTEE

1. Commissioner & Secretary/Secretary to the Govt. of Assam,                    : Chairman

Industries Department

2. Secretary to the Government of Assam, Finance Department                  : Member

3. Commissioner of Taxes, Government of Assam.                                       : Member

4. Director of Industries, Government of Assam                                              : Member

5. General Manager, Industrial Development Bank of India                          : Member

6. Director Employment & Craftsman Training, Govt. of Assam                   : Member

7. Additional Director of Industries (Udyog Sahayak) Govt. of Assam         : Member

8. Managing Director, The Assam Industrial Development                           : Member

Corporation Ltd.

The Chairman may co-opt expert(s) to specific meeting(s) of the Committee

Function:

The Functions of the Committee shall be as follows:

(a) To scrutinise the applications and to recommend the deserving cases for the issue of Eligibility Certificate for the Sales Tax exemption in case of an industrial unit, where the total investment in plant and machinery exceeds Rs 60 lakhs (Rupees sixty lakhs) for a SSI unit and Rs 75 lakhs (Rupees seventy five lakhs) for an ancillary unit and to perform the duties specified in the Government notification No. FTX 78/91/235 dated the 16th August, 1995 of the Government of Assam, Finance Department.

(b) The Committee shall meet as and when necessary and at least once in every quarter with the approval of the Chairman.

(c) At least six member including the Commissioner & Secretary/Secretary to the Government of Assam, Industries Development; Commissioner of Taxes, Government of Assam; Director of Industries, Government of Assam/Additional Director of Industries (Udyog Sahayak), Government of Assam; Director of Employment and Craftsman Training, Government of Assam; and the Managing Director, The Assam Industrial Development Corporation shall be necessary for any sitting of the Committee.

 

 

 

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