WHEREAS the Government of Gujarat considers it necessary so to do in the public interest;

NOW, THEREFORE, in exercise of the powers conferred by sub-section (1) of section 40 of the Gujarat Value Added Tax Act, 2003 (Guj. 1 of 2005), the Government of Gujarat hereby authorizes the Commissioner to grant refund to the certified manufacturer of the amount of tax separately charged by a registered dealer from whom he has purchased the goods, subject to the following conditions namely :-

1. Eligibility.-

A registered dealer who is a manufacturer of goods in the industries specified in the annexure appended to this notification and who has obtained the Eligibility Certificate prior to the 1st April, 2006 from the Khadi and Village Industries Commission or Gujarat Rajya Khadi and Gramodhyog Board (hereinafter referred to as 'the appropriate authority') and the Exemption Certificate from the Commissioner under the provisions of earlier law.

2. Procedure.-

(1) The eligible dealer referred to in condition 1 shall apply in Form KVIC-1 appended to this notification to the Commissioner within thirty days from the date of issue of this notification.

(2) On receipt of such application, the Commissioner may, subject to the provisions of this notification issue a certificate of entitlement in Form KVIC-2 appended to this notification effective from the date of this notification for the period and on the terms and conditions mentioned in the eligibility certificate granted by the appropriate authority.

3. General conditions.-

(1) Subject to the provisions of section 11, the certified manufacturer shall be entitled to refund of tax on purchases of taxable goods other than the capital goods.

(2) The refund shall be granted for the period-

(a) ending on the 31st March, 2009;

(b) specified in eligibility certificate issued by the appropriate authority.

(c) till the turnover of the sales does not exceed an amount of rupees one crore; or

(d) till the sales of specified goods does not exceed the quantity approved by the appropriate authority

Whichever event occurs earlier.

(3) The refund of tax shall be granted only for the purchases used in manufacture of specified goods sold within the time limit mentioned in condition 3(2).

(4) the tax credit shall not be admissible for the purchases for which refund of tax is granted.

(5) The certified manufacturer shall furnish the details of the tax invoices of the purchases for claiming the refund of tax alongwith the return.

(6) The certified manufacturer shall use the goods so purchased for which refund of tax is claimed, in his manufacturing unit situated in the State as raw material for the manufacture of specified goods or as packing materials in the packing of goods so manufactured.

(7) If the certified manufacturer contravenes any of the conditions of this notification or any of the provisions of the Act or the rules made in this behalf, the certificate issued to him by the Commissioner shall be liable to be cancelled and on such cancellation, the benefit granted under this notification shall cease to have effect from the date of such contravention.

(8) The certified manufacturer shall make an application for refund of tax to the concerned Commercial Tax Officer and such Officer shall, as far as possible, grant refund within one month after the receipt of the application for refund.

Explanation.- For the purpose of this notification.-

(1) The expression 'certified manufacturer' means the dealer who has been granted a certificate of entitlement by the Commissioner.

(2) The expression 'specified goods' means the products of 'village industries' or 'Khadi' as defined under the Khadi and Village Industries Commission Act, 1956 and related to the activities mentioned in the annexure appended to this notification for which the eligibility certificate has been granted by the appropriate authority.

FORM KVIC -1

Application for Certificate of Entitlement

To,

The Commercial Tax Officer,

..............................................

..............................................

I submit my application as follow for the grant of certificate of entitlement for refund/remission under the Government Notifications, Finance Department No. (GHN-93) VAT-2006-S.40(1) (2)-TH, dated 18th August, 2006 and No. (GHN-94) VAT-2006-S.41(1)(3)-TH, dated 18th August, 2006.

**

I .................................................... do hereby certify that the details shown in the application are true and correct.

** Attach the necessary documents supporting the application.

FORM KVIC -2

Certificate of Entitlement

This is to certify that the dealer shown herein has been granted the certificate of entitlement for refund/remission.

The grant of this certificate is subject to the terms and conditions prescribed in the Government Notifications, Finance Department No. (GHN-93) VAT-2006-S.40(1) (2)-TH, dated 18th August, 2006 and No. (GHN-94) VAT-2006-S.41(1)(3)-TH, dated 18th August, 2006.

ANNEXURE

(See condition 1)

Industries engaged in the following activities covered under the Khadi and Village industries Commission Act, 1956.