40. Deferment of payment of tax in respect of new and existing industrial units
(1) Notwithstanding anything contained in sub-section (4) of section 30 or section 47, the tax payable by a registered dealer under this Act according to his returns referred to in sub-section (2) of section 30 or the tax due from him according to a notice issued under section 47 shall subject to the other provisions of this section or the rules made thereunder, be deferred,-
(a) in the case of a newly set up industrial unit in West Bengal, from the prescribed date on which such tax becomes payable according to such return in a year during the period referred to in sub-section (2) in respect of sales of goods, other than such goods as may be prescribed, manufactured in such unit or goods purchased for use directly in the manufacture of such goods, or
(b) in the case of an existing industrial unit in West Bengal which has been expanded on approval of the State Government, from the prescribed date on which such tax becomes payable according to such return in a year during the period referred to in sub-section (2) in respect of sales of goods, other than such goods as may be prescribed, manufactured in the expanded portion of such industrial unit on utilisation of the added capacity of the plant and machinery installed therein or goods purchased for use directly in the manufacture of such goods,
for such period, not exceeding fifteen years, as may be prescribed, and different periods may be prescribed for different such newly set up or existing industrial units, having regard the location of such units in different areas as may be prescribed :
PROVIDED
PROVIDED FURTHER
(i) be extended by two years in the case of such industrial units as may be prescribed, where investment in fixed capital assets exceeds five hundred crore rupees, or
(ii) be extended by such period, not exceeding one year, in the case of such industrial units, as may be prescribed, where pollution abatement measures are adopted.
(2) The period in respect of which the dealer is eligible for deferment of tax under sub-section (1) (hereinafter referred to as the eligible period) shall commence,-
(a) in respect of a newly set up industrial unit in West Bengal, from the prescribed date on which such tax becomes first payable according to such return in respect of goods manufactured in such unit or goods purchased for use directly in the manufacture of such goods, or
(b) in respect of an existing industrial unit in West Bengal, from the prescribed date on which such tax becomes first payable according to such return in respect of goods manufactured in such unit on utilisation of the added capacity of new plant and machinery installed therein by way of expansion on approval by the State Government or goods purchased for use directly in the manufacture of such goods,
and shall expire on the completion of such period, not exceeding fifteen years, from such commencement as may be prescribed, and different periods may be prescribed in respect of different such newly set up or existing industrial units, having regard to the location of such units in different areas :
PROVIDED that payment of tax shall not be deferred after the amount of tax or the aggregate of the amounts of tax payable from the date referred to in sub-section (2) exceeds any of the limits prescribed under sub- section (3) at any time before the expiry of the eligible period.
(3) The amount of tax or the aggregate of the amounts of tax payable that the dealer is eligible for deferment under sub-section (1) for the whole of the eligible period shall be,-
(a) in the case of a newly set up industrial unit in West Bengal, such percentage of the gross value of the fixed capital assets as stand on the date on which the tax becomes payable for a return period by the dealer 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 approval of the State Government, such percentage of the gross value of the fixed capital assets as stand on the date on which the tax becomes payable for a return period by the dealer in respect of sales of goods manufactured in the expanded portion of such unit,
not exceeding one hundred and seventy-five per centum of such gross value, as may be prescribed or seventy-five crore rupees, whichever is less, and different percentages of the such gross value may be prescribed for such newly set up or existing industrial units, having regard to the location of such units in different areas.
PROVIDED that the amount eligible for deferment of payment of tax in the case of industrial units which have adopted pollution abatement measures, may be enhanced to such extent and subject to such restrictions and conditions as may be prescribed.
(4) A newly set up industrial unit or an existing industrial unit,-
(a) where such newly setup industrial unit was established and commissioned by the dealer for manufacture of goods in West Bengal for the first time on or after the 1st day of April, 1989, but not later than the 31st day of March, 1993, or
(b) where such existing industrial unit was established before the 1st day of April, 1989 and expanded on or before the 31st day of March, 1993,
and has enjoyed, or has been entitled to enjoy, the benefit of deferment of payment of tax in respect of such newly set up industrial unit or the expanded portion of such existing industrial unit in accordance with the corresponding provisions of the Bengal Finance (Sales Tax) Act, 1941 (Ben. Act VI of 1941), of the West Bengal Sales Tax Act, 1954, (West Ben. Act IV of 1954), as they stood on the 14th day of April, 1993, shall continue to enjoy or to be entitled to enjoy such benefit in accordance with such corresponding provisions of the said Act.
(5) Subject to such conditions and restrictions as may be prescribed, a dealer who has enjoyed the benefit of deferment of payment of tax under this section may, in addition to such benefit as enjoyed by him, be eligible, if he so opts, for further deferment of payment of such amount of tax or the aggregate of the amounts of tax as may be equivalent to the capital investment subsidy receivable by him under any scheme approved by the State Government for such period, not exceeding four years from such date, as may be prescribed.
(6) A registered dealer shall not be eligible for deferment of payment of tax under this section in respect of any sale of goods manufactured in his newly set up industrial unit or expanded portion of his existing industrial unit, if he once opts for remission of tax under section 41, section 42 or section 43 in respect of sale of such goods manufactured in such industrial unit.
(7) The tax deferred under sub-section (1) shall be paid, in such manner as may be prescribed, by a registered dealer into a Government Treasury or The Reserve Bank of India after such period, at such intervals, in such installments, and by such dates, as may be prescribed.
(8) Notwithstanding anything contained in section 31 and section 32, no interest shall be payable by a registered dealer on the tax deferred under sub-section (1) until the amount of tax so deferred becomes payable in the prescribed manner referred to in sub-section (7), and where such registered dealer fails to make payment of tax under sub-section (7) in the prescribed manner and by the prescribed date, he shall pay a simple interest at the rate of two per centum for each British calendar month of default from the first day of such month next following such prescribed date up to the month preceding the month of full payment of such tax or upto the month preceding the month of commencement of proceedings under section 52, whichever is earlier, upon so much of the amount of such tax payable by him in accordance with the provisions contained in sub-section (7) as remains unpaid at the end of each such month and all other provisions of section 31 or section 32 and those of section 49 and section 50 shall apply accordingly.
(9) A registered dealer availing of the benefit of deferment of payment of tax under this section shall, notwithstanding such deferment, furnish return as required by section 30 and the rules made thereunder.
(10) Where the tax payable by a dealer in respect of a year or part of a year is deferred under sub-section (1) and where a loan liability equal to the amount of tax so deferred is created 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 prescribed manner for the prescribed eligible period, such tax shall be deemed to have been paid in accordance with the provisions of sub-section (4) of section 30 and section 47, 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-section (7), at the expiration of the said eligible period.
(11) For the contravention of any provisions of this Act or the rules made thereunder, the benefit of deferment of tax under sub-section (1) shall, subject to such conditions and restrictions as may be prescribed, be discontinued even before the expiry of the eligible period referred to in sub-section (2).
(12) A newly set up industrial unit or an existing industrial unit,-
(a) where such newly set up industrial unit was established and commissioned by a dealer for manufacture of goods in West Bengal for the first time on or after the 1st day of April,1993, but not later than the day immediately before the appointed day, or
(b) where such existing industrial unit was established before the 1st day of April,1989 and expanded before the appointed day.
and has enjoyed, or has been entitled to enjoy, the benefit of deferment of payment of tax in respect of such newly set up industrial unit or the expanded portion of such existing industrial unit in accordance with the corresponding provisions of the Bengal Finance (Sales Tax) Act, 1941 (Ben. Act VI of 1941), of the West Bengal Sales Tax Act, 1954, (West Ben. Act IV of 1954), as they stood on the day immediately before the appointed day, shall continue to enjoy or to be entitled to enjoy such benefit in accordance with such corresponding provisions of the said Act.
EXPLANATION.-
(a) the expression "newly set up industrial unit" shall mean an industrial unit having investment in fixed capital assets 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 appointed day under any scheme approved by the State Government and which is registered with such authority as may be prescribed.
(b) the expression "existing industrial unit" shall mean an industrial unit which exists in West Bengal and manufactures goods in such unit immediately before it starts commercial production in its expanded portion on or after the appointed day ;
(c) the expression "expanded portion", in relation to an existing industrial unit, shall mean the portion expanded with additional capacity on or after the appointed day 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 paid by 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 equipments or pollution control equipments, installed or acquired by him on or before the date on which tax becomes payable for a return period by the dealer in respect of sales of goods manufactured in such unit, 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 equipments or pollution control equipments, installed or purchased by such dealer on or before the date on which tax becomes payable for a return period by the dealer in respect of sales of goods manufactured, in the expanded portion of such unit on the basis of any scheme approved by the State Government.