In exercise of the powers conferred by sub-section (3D) of section 8 of the Maharashtra Value Added Tax Act, 2002 (Mah.IX of 2005), the Government of Maharashtra hereby exempts fully from payment of tax with effect from the 1st April 2005, the transfer of property in goods, involved in the sizing and warping of yarn, subject to the following conditions and restrictions :-

(1) The said goods shall be consumed or used in sizing and warping of yarn.

(2) The set off admissible to the dealer,-

(i) in respect of goods referred to at serial no. (1) and consumables and packing materials used for the sizing and warping of yarn, shall be of tax in excess of the amount calculated at the rate notified, from time to time by the Central Government for the purposes of subsection

(1) of section 8 of the Central Sales Tax Act, 1956 (74 of 1956) on the said purchase price;

(ii) in respect of capital assets used exclusively for the sizing and warping of yarn, shall be as per rule 52 of the Maharashtra Value Added Tax Rules, 2005.

(3) If the tax has been paid or otherwise recovered in part or full, during the period starting on the 1st April 2005 and ending on the 31st March 2016, on the transfer of property in goods, involved in the sizing and warping of yarn, then the exemption shall be subject to the following conditions : -

(a) where tax is paid or recovered in full from customers, then no exemption shall be granted; or

(b) where tax is paid or recovered in part from customers, then the exemption shall be restricted to the extent of unpaid tax; or

(c) in case the taxes are collected partly and the said taxes are not paid then in such cases, the taxes so collected, shall required to be deposited within 30 days from the date of the Order No. VAT-1517/CR 43(B)/Taxation-1, dated 19th April 2017, and the exemption shall be admissible to the extent of taxes not collected subject to payment as aforesaid.

(4) If because of condition (3) exemption is not available in full or part, then set-off in respect of the purchases of goods shall be granted in full or, as the case may be, in part to the extent to which exemption is not available.

By order and in the name of the Governor of Maharashtra,

R. D. BHAGAT,

Deputy Secretary to Government.