WHEREAS, the State Government is satisfied that it is expedient so to do in public interest;

NOW, THEREFORE, in exercise of the powers conferred by sub-section (4) of section 4 of The Uttarakhand Value Added Tax Act, 2005 (Act No. 27 of 2005) read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to Make, with effect from the date of publication in the Gazette, the following amendment in Schedule-I of The Uttarakhand Value Added Tax Act, 2005.

Amendment

(1). In Schedule-I, for the existing entry at serial no. 35, the following entry shall be substituted; namely-

35(a). Khadi cloth and all types of khadi garments and made-ups of khadi such as covers of rajaai, gadda, gaddi and pillows.

35(b). The following products manufactured by the units, having turnover upto Rs. 50 Lakh per annum, certified by All India Khadi and Village Industries Commission or the Uttarakhand Khadi and Village Industries Board and verified by the Joint Commissioner (Executive):- Safety matches, fire crackers, kapoor, gum and resin, fibres other than coconut fibres and handmade goods such as paper, paperboard, file cover, file board, drawing paper, greeting cards and invitation cards.

Further due to the wrong interpretation by the departmental officers, if any tax has been imposed on khadi cloth and khadi garments from 1-10-2005 till the issuance of this notification, the power to remit such tax shall be exercised by the assessing authority with the following restrictions-

1. The assessing officer on examination of books of account feels satisfied that the assessee has not realised any tax on such sales.

2. The assessing officer shall seek the approval on file from the Joint Commissioner (Executive) Commercial tax of his area before remission of tax.

3. Such dealers, who have realised the tax from the purchaser shall deposit the tax as per rules.

(Radha Raturi)

Secretary.