Deferment of payment of output tax in respect of a newly set up industrial unit or in the expanded portion of an existing industrial unit.
165. (1) The output tax payable under the Act by a registered dealer who is entitled to enjoy the deferment of payment of such tax under clause (a) of sub-section (1) of section 118, according to his returns referred to in sub-section (1) of section 32 or the output tax payable or due by him according to a notice issued under sub-section (2) of section 45, or clause (b) of sub-section (3) of section 46 shall, subject to the provisions of clause (a) of sub-section (1) of section 118 and the other provisions of these rules, be deferred for the balance un-expired period -
(a) in the case of a newly set up industrial unit in West Bengal, on which such tax becomes payable according to such return in a year in respect of sales of goods manufactured in such unit; or
(b) in the case of an existing industrial unit in West Bengal, which has been expanded on the approval of the State Government, on which such tax becomes payable according to such return in a year in respect of sales of goods, manufactured in the expanded portion of such industrial unit on utilisation of the added capacity of the plant and machinery installed therein.
(2) The balance un-expired period in respect of which the dealer is eligible for deferment of output tax under sub-rule (1) and according to the provisions in this Part and Part III (hereinafter referred to as the "available eligible period"), shall commence from the appointed day and shall expire on the completion of such period. Provided that payment of such tax shall not be deferred after the amount of output tax or the aggregate of the amounts of such tax payable from the appointed day, exceeds any of the limits prescribed under sub-rule (3) at any time before the completion of the available eligible period.
(3) The amount of output tax or the aggregate of the amounts of such tax payable that the dealer is eligible for deferment under clause (a) of sub-section (1) of section 118 for the whole of the available eligible period shall be, -
(a) in the case of a newly set up industrial unit in West Bengal, such balance unexpired amount of the specified percentage of the gross value of the fixed capital assets which he would have continued to enjoy under section 40, or section 42, or section 43 of the West Bengal Sales tax Act, 1994 (hereinafter referred to as the "previous Act") on sales of goods manufactured in such unit, on the appointed day had this Act not come into force; or
(b) in the case of an existing industrial unit in West Bengal which has been expanded on approval of the State Government, such balance un-expired amount of the specified percentage of the gross value of the fixed capital assets which he would have continued to enjoy under section 40, or section 42, or section 43 of theprevious Act on sales of goods manufactured in the expanded portion of such unit, on the appointed day had this Act not come into force, the amount (hereinafter referred to as the "balance available amount") in rupees which remains after deducting the amount of tax that has already been deferred by him under the provisions of the previous Act, up to the day immediately preceding the appointed day from seventy five crore rupees, whichever is less.
(4) A registered dealer enjoying the benefit of deferment of payment of output tax under clause (a) of sub-section (1) of section 118 shall, notwithstanding such deferment, furnish returns as required by section 32 and the rules made thereunder.
(5) No interest shall be payable by a registered dealer on the output tax deferred under sub-rule (1) until the amount of such tax so deferred becomes payable in the prescribed manner referred to in sub-rule (6), and where such dealer fails to make payment of such tax when it becomes payable, he shall pay a simple interest at the rate of twelve per centum per annum under section 34A for the period of default, upon so much of the amount of such tax payable by him in accordance with the provisions contained in subrule (6) as remains unpaid and all other provisions of section 33 or section 34 and those of section 50 and section 51 shall apply accordingly.
(6) The output tax deferred under clause (a) of sub-section (1) of section 118 shall be paid by a registered dealer, in the manner prescribed in rule 58, into an appropriate Government Treasury after enjoying such deferment, at such intervals, in such instalments and by such dates, as prescribed in rule 172.
(7) Where the output tax payable by a dealer in respect of a year or part of a year is deferred under clause (a) of sub-section (1) of section 118 and where a loan liability equal to the amount of tax so deferred is created in the manner prescribed in rule 174 by such authority as the State Government may, by special or general order, specify, and such loan liability is admitted by such dealer in the manner prescribed in such rule for the available eligible period, such tax shall be deemed to have been paid in accordance with the provisions of sub-section (2) of section 32 and section 31, as the case may be, in respect of the year or part of a year for which such tax is payable by, or due from, such dealer, and such deferred tax shall become due for payment under sub-rule (6), at the end of the enjoyment of such deferment of payment of tax under sub-rule (1).
(8) For the contravention of any provisions of these rules, the benefit of deferment oftax under sub-rule (1) shall, subject to such conditions and restrictions as prescribed elsewhere in these rules, be discontinued even before the expiry of the available eligible period referred to in sub-rule (2).
(9) For the purposes of clause (a) and clause (c) of sub-section (1) of section 116,-
(a) the expression "newly set up industrial unit" shall mean an industrial unit which is entitled to enjoy deferment of payment of output tax under the clause (a) of sub-section (1) of section 118, or remission of output tax under the clause (c) of sub-section (1) of section 118, as the case may be, and having investment in fixed capital asset exceeding ten lakh rupees which is established and commissioned by the dealer for the manufacture of goods in West Bengal for the first time on or after the first day of May, 1995 under any scheme approved by the State Government and which is registered with the appropriate authority prescribed by the State Government for such purpose;
(b) the expression "existing industrial unit" shall mean an industrial unit in West Bengal which is entitled to enjoy deferment of payment of output tax under the clause (a) of sub-section (1) of section 118, or remission of output tax under the clause (c) of sub-section (1) of section 118, and manufactures goods in such unit immediately before it started commercial production in its expanded portion on or after the first day of May, 1995;
(c) the expression "expanded portion" in relation to an existing unit, which is entitled to enjoy deferment of payment of output tax under the clause (a) of subsection (1) of section 118, or remission of output tax under the clause (c) of subsection (1) of section 118, shall mean the portion expanded with additional capacity on or after the first day of May, 1995 with the approval of the State Government for the manufacture of goods in West Bengal, either in its existing location or in a different area;
(d) the expression "gross value of fixed capital assets" shall mean,-
(i) in relation to a newly set up industrial unit, the actual price or premium paidby the dealer for the land, whether freehold or leasehold, expenditure incurred for construction of office building excluding residential portion thereof, and factory shed erected by him and the cost of new plant and machinery including the productive equipment, or pollution control equipments, installed or acquired by him before the appointed day; and
(ii) in relation to an existing industrial unit, the expenditure incurred by a dealer for construction of a factory shed including the price or premium paid for land used for erection of such factory shed and the cost of new plant and machinery including the productive equipment, or pollution control equipments, installed or purchased by such dealer before the appointed day.
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