93. Proportionate incentives to an Eligible Unit in certain contingencies :-
1(1) Notwithstanding anything to the contrary contained in any Package Scheme of Incentives, any Eligible Unit, to whom the Eligibility Certificate and Certificate of Entitlement have been granted at any time before or after the appointed day, on account of increase in the production capacity or, as the case may be, acquisition of new fixed capital assets, shall be entitled to draw the benefits in any year, only on that part of its turnover of sales or purchases as may be arrived at by applying the provisions of sub-section (1A) to the total turnover of sales and purchases of the said unit in that year.
(1A) In case where the Eligible Unit has, -
(a) maintained separate accounts of sales and purchases and is able to identify the sales and purchases pertaining to the increase in the production capacity or, as the case may be, the said eligible investment, then the portion of the turnover eligible for benefits will be decided solely on the basis of such identification;
(b) not maintained separate accounts of sales and purchases and is not able to identify the sales and purchases in relation to increase in the production capacity or, as the case may be, the said eligible investment, then such benefits shall be calculated after applying the formulae in sub-clause (i) or, as the case may be, sub-clause (ii) given as under :-
(i) in case where there is increase in production capacity, then for the Package Scheme of Incentives for 1988 or, as the case may be, package Scheme of Incentives for 1993, the formulae shall be as below :-
Turnover x Increase in Production capacity
Eligible Turnover = _____________________________________
Total production capacity after such increase
(ii) in case where there is no increase in production capacity, then for the package Scheme of Incentives for 1993, the formulae shall be as below :-
Turnover x New fixed capital investment
Eligible Turnover = ___________________________________
Total gross fixed capital investments
(1B) When the eligible turnover comprises of multiple finished products, then,–
(a) the production capacity of each of the finished products shall be separately considered in determining the corresponding eligible turnover, and
(b) eligible turnover shall relate to those products on which the eligible investment has made impact and when eligible investment does not add to production capacity, then it shall apply to all the finished products.
(2) The benefits, if any, availed of by an Eligible Unit in contravention of sub-section (1), if any, shall be and shall be deemed to have been withdrawn and such unit shall be liable to pay tax including penalty and interest, if any, in respect of the turnover of sales and purchases in excess of the turnover arrived at under sub-section (1) and accordingly any benefit which is so availed shall be recovered as arrears of tax as provided in sub-section (3).
(3) For recovery of arrears of tax, the Commissioner shall require the Eligible Unit, by order in writing, to pay the tax, interest and penalty on such turnover on which the benefits are not available and serve on the dealer, a notice of demand as provided in sub-section (4) of section 32 accordingly:
Provided that, no order under this section shall be passed without giving the Eligible Unit a reasonable opportunity of being.
2[Explanation – For the purpose of this section, the expressions ‘production capacity’, ‘eligible investments’ and ‘gross fixed capital investments’ shall have the same meanings as respectively assigned to them in the relevant Package Scheme of Incentives.]
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1. Sub-section (1) was substituted and deemed always to have been substituted by Mah. Act No. XXII of 2009 dt.16.12.2009. Prior to substituted the “sub-section (1)” was read as under:- “(1) Notwithstanding anything to the contrary contained in any Package Scheme of Incentives, any Eligible Unit, to whom the Eligibility Certificate has been granted, shall be eligible to draw the benefits in any year after the appointed day, only on that part of its turnover of sales or purchases as may be arrived at by applying the ratio as may be prescribed by the State Government to the total turnover of sales and purchases of the said unit in that year and different ratios may he prescribed for different classes of units and different schemes.
2. Explanation was added by Mah. Act No. XXII of 2009 dt.16.12.2009 w.e.f. 27.08.2009 |