42. Deferment of payment of tax and remission of tax for closed industrial units

(1) A registered dealer in respect of such industrial unit in West Bengal as the State Government may, by general or special order, declare as a closed unit shall, subject to the other provisions of this section, be eligible for deferment of payment of tax according to the provision of section 40 or remission of tax according to the provisions of section 41 where-

(a) the ownership of the business relating to such unit is transferred, by sale or otherwise, to such dealer or person who-
(i) has been registered before such transfer, or

(ii) is deemed to be registered under section 99, or

(iii) gets himself registered on a date subsequent to such transfer, and ;

(b) such unit is rehabilitated or revived on or after the appointed day by such dealer under any scheme approved by the State Government in this behalf on transfer of the ownership of the business relating to such unit.

(3) The amount of tax or the aggregate of the amount of tax payable by, or due from, the dealer, upon the transfer of the business relating to such unit under section 99, shall be such percentage of the gross value of fixed capital assets on the date on which the tax becomes payable for a return period in respect of sales of goods manufactured in such unit following the rehabilitation or revival as prescribed under section 40 or section 41, as the case may be.

(4) The amount of tax or the aggregate of the amounts of tax that a registered dealer, upon the transfer of the business relating to such unit under section 99, is eligible for deferment under sub-section (3) of section 40 or remission of tax under section 41, as the case may be, shall be reduced by the amount of tax in respect of which the transferor-dealer has enjoyed the benefit of deferment of payment of tax under section 40 or remission of tax under section 41, as the case may be.

(5) The provisions of sub-section (6) of section 40 or sub-section (4) of section 41 shall not apply to a closed unit if the transferor-dealer of such unit has enjoyed the benefit under section 40 or section 41 before the closure of such unit, but if such registered dealer opts once for deferment of payment of tax after its rehabilitation or revival, he shall not be eligible for remission of tax and vice versa.

(6) A closed unit which, after being rehabilitated or revived on or after the 1st day of April, 1993 and before the appointed day, has enjoyed, or has been entitled to enjoy, the benefit of deferment of payment of tax or remission of tax in respect of such unit under the provisions of section 10H of the Bengal Finance (Sales Tax) Act, 1941 or section 8J of the West Bengal Sales Tax Act, 1954, as the case may be, 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 provisions of the said Act.

EXPLANATION.- The expression "gross value of fixed capital assets", in relation to a closed industrial unit, shall, for the purposes of section 40 or section 41, mean -

(a) where the ownership of the business of such unit is transferred by sale, price paid by the transferee as the value of land, freehold or leasehold, office building excluding residential portion, factory shed, plant and machinery including productive equipments, and pollution control equipments, or

(b) where the ownership of the business of such unit is transferred, otherwise than by way of sale, the value of land, freehold or leasehold, office building excluding residential portion, factory shed, plant and machinery including productive equipments and pollution control equipements as they stand on the date of such transfer,