In exercise of the powers conferred by sub-section (1) read with sub-section (3) of section 60 of the Haryana Value Added Tax Act, 2003 (6 of 2003), and with reference to Haryana Government, Excise and Taxation Department, notification No. web.7/H.A.6/2003/S.60/2008, dated the 11th November, 2008, the Governor of Haryana hereby makes the following rules further to amend the Haryana Value Added Tax Rules, 2003, namely :-

1. These rules may be called the Haryana Value Added Tax (Third Amendment) Rules, 2008.

2. In the Haryana Value Added Tax Rules, 2003, in rule 69, after sub-rule (6), the following para shall be inserted and shall be deemed to have been inserted with effect from the 6th June, 2005, namely :-

"(6a) (i) Mega units coming up in backward areas shall be entitled to get benefit of conversion of 50% of Value Added Tax paid on the sale of such goods into interest free loan for a period of 7 years from the date of commercial production repayable after a period of 5 years from the date of grant of interest free loan.

(ii) Small Scale Industrial units coming up in backward areas shall get similar benefit for a period of 5 years from the date of commercial production repayable after a period of 5 years from the date of grant of interest free loan.

(iii) Food processing units coming up anywhere in the State shall get similar benefit of conversion of 75% of Value Added Tax paid into interest free loan for a period of 5 years from the date of commercial production repayable after a period of 5 years from the date of grant of interest free loan.

(iv) Down stream industries of Indian Oil Corporation Limited to be set up in the industrial park to be established as a part of petro chemical hub shall be entitled to get benefit of conversion of 50% of Value Added Tax paid on the sale of goods produced into interest free loan for a period of 7 years from the date of commercial production repayable after a period of 7 years from the date of grant of interest free loan.

Explanation .- The quantum of interest free loan shall be determined on the basis of tax actually paid along with the returns filed in the Department of Excise and Taxation under the Haryana Value Added Tax Act, 2003(6 of 2003), only in respect of intra-State sales of manufactured goods for consumption within the State, except plant and machinery. The use of such goods as raw material in manufacturing of other goods within the State shall not be considered as consumption within the State."

RAMENDRA JHAKU,

Financial Commissioner and Principal Secretary to

Government, Haryana, Excise and Taxation Department