The West Bengal Sales Tax Act, 1994
Chapter VI : INCENTIVES TO INDUSTRIAL UNITS-TAX HOLIDAY, DEFERMENT OF PAYMENT OF TAX AND REMISSION OF TAX

41. Remission of tax payable by new and existing industrial units

(1) Where a registered dealer manufactures any goods, other than such goods as may be prescribed, in a newly set up industrial unit established by him, or in an expanded portion of an existing industrial unit, in West Bengal, the tax payable by such dealer under this Act according to his returns referred to in sub-section (2) of section 30 in respect of sales of such goods manufactured in such unit or purchase of goods for use directly in the manufacture of such goods shall, subject to such conditions and restrictions as may be prescribed, be remitted or continue to be remitted until the amount or the aggregate of the amounts of such tax exceeds the limit of such percentage of the gross value of fixed capital assets as on the date on which the tax becomes payable for a return period in respect of sales of goods manufactured in such newly set up industrial unit or expanded portion of such existing industrial unit, not exceeding one hundred, and fifty per centum of such gross value as may be prescribed or seventy-five crore rupees, whichever is less, and different percentages of such gross value may be prescribed for such newly set up industrial units or expanded portion of such existing industrial units, having regard to the location of such units, in such areas as may be prescribed :

PROVIDED that remission of such tax to the extent of the prescribed limit shall in no case continue in the case of a newly set up industrial unit or expanded portion of existing industrial unit beyond such period exceeding thirteen years as may be prescribed, and different periods may be prescribed for newly set up industrial units or expanded portion of existing industrial units, having regard to the location of such units in different areas :

PROVIDED FURTHER that the remission of tax payable by a dealer in respect of goods manufactured by him in any of the prescribed areas may be restricted to sales of such class or classes of goods as may be prescribed :

PROVIDED ALSO that the period prescribed under the first proviso may, subject to such conditions and restrictions as may be prescribed,-

(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 :

PROVIDED ALSO that the amount eligible for remission 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.

(2) Subject to such conditions and restrictions as may be prescribed, a dealer who has enjoyed the benefit of remission of tax under this section may, in addition to such benefit as enjoyed by him, be eligible, if he so opts, for further remission of such amount of tax or the aggregate of the amount 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.

(3) A registered dealer availing the benefit of remission of tax under this section shall, notwithstanding such remission, furnish returns as required by section 30 and the rules made thereunder.

(4) A registered dealer shall not be eligible for remission 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 deferment of payment of tax under section 40 in respect of sale of such goods manufactured in such industrial unit.

(5) A newly set up industrial unit or an existing industrial unit,-

(a) where such newly set up 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 June, 1990, but not later than the 31st day of March, 1993, or

(b) where such existing industrial unit was established before the first day of June, 1990 and expanded on or after the 1st day of June, 1990, but not later than the 14th day of April, 1993,

and has enjoyed, or has been entitled to enjoy, the benefit of remission 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) or 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.

(6) 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 June, 1990, and expanded on or after the 15th day of April, 1993, but not later than the day immediately preceding the appointed day,

and has enjoyed, or has been entitled to enjoy, the benefit of remission 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) or 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.