Whereas goods covered under entry at serial number 21 of the Fourth Schedule under the Assam Value Added Tax Act, 2003, "Drugs and medicines including vaccines, disposable hypodermic syringes, hypodermic needles, catguts, surgical dressings, but excluding anti-malaria drugs mentioned in entry at serial 65 of the First Schedule (On Maximum Retail Price basis).

Explanation - The expression 'drugs and medicines' shall not include products capable of being used as cosmetics and toilet preparations including tooth paste, tooth powder, cosmetics, toilet articles and soaps".

were taxable at the point of first sale in the State on `MRP' till omission of this entry vide Government Notification No.FTX.55/2005/Pt-V/194 dated 31st October, 2009;

And whereas such goods have since then made taxable at every point of sale;

And whereas the dealers dealing in the goods had some stock in their possession on 31st October, 2009, which has suffered tax at the first point of sale in the State on its MRP;

And whereas it has been represented for allowing input tax credit on such stock, which has already suffered tax. The matter has been duly considered;

And whereas the Government is satisfied that the circumstances exist which render it necessary for it to remove the said difficulty arising in giving effect to the provisions of the Act.

Now, therefore, in exercise of powers conferred by Section 110 of the Assam Value Added Tax Act, 2003 (Assam Act VIII of 2005), the Governor of Assam is hereby pleased to allow input tax credit on sale of stock of the items as mentioned in entry at serial No.21 of the Fourth Schedule (since omitted) held by a dealer on 31st October, 2009, which has suffered tax at the first point of sale in the Stater on its MRP.

Provided that dealer maintains proper account of such stock with proof of payment of tax on such stock.

This notification shall be deemed to have come into force on the 31st October, 2009.