In exercise of the powers conferred by sub-section (1) of section 63 read with first proviso to sub-section (1) of section 6 of the Himachal Pradesh Value Added Tax Act, 2005 (Act No. 12 of 2005), the Governor of Himachal Pradesh is pleased to make the following rules further to amend the Himachal Pradesh Value Added Tax Rules, 2005 notified vide this department notification number EXN-F(5)-4/2005, dated 2nd December, 2005 and published in Rajpatra, Himachal Pradesh (Extra Ordinary), dated 7th December, 2005 for carrying out the purposes of the said Act, namely:-
1. Short Title.
(1) These rules may be called the Himachal Pradesh Value Added Tax(Seventh Amendment) Rules, 2012.
(2) These shall come into force from the date of publication in the Rajpatra, Himachal Pradesh.
2. Addition of CHAPTER-XV.
After CHAPTER-XIV of the Himachal Pradesh Value Added Tax Rules, 2005 (hereinafter referred to as the 'said rules' the following CHAPTER shall be added, namely:-
"CHAPTER-XV
PROCEDURE TO REGULATE CONCESSIONAL RATE OF TAX TO MANUFACTURES ON INDUSTRIAL INPUTS, RAW MATERIALS AND PACKING MATERIALS
96. Levy of tax on industrial inputs.-
Notwithstanding, anything to the contrary contained in these rules, the tax shall be levied @ 5% on the sale of industrial inputs, raw-materials and packing materials other than those already listed under entry number 55 of Part-II-A of Schedule 'A' but excluding the goods as specified in sub-section (8) of Section 11 of Himachal Pradesh Value Added Tax Act, 2005.
97. Procedure and Condition for levy of concessional tax.-
Notwithstanding, anything contained in rule 96, the levy of tax @ 5% on industrial inputs, raw-materials and packing materials shall be subject to the following restrictions and conditions, namely;
(i) the goods which are Industrial Inputs, raw materials or packing materials to be purchased under clause (b) of sub-section (3) of section 8 of the Central Sales Tax Act, 1956;
(ii) such sales of Industrial Inputs, raw materials or packing materials are made by registered dealer to other registered and eligible industrial unit;
(iii) the goods sold are duly specified in the Entitlement Certificate in Form- XLIII issued by the Assessing Authority of the district concerned;
(iv) the goods sold are used by purchasing industrial unit as raw material to manufacture goods for sale in the State of Himachal Pradesh or sale in the course of inter-State trade or commerce or export out of the territory of the country; and
(v) the concessional rate shall be applicable to all eligible industrial units from the date of issue of notification regarding Himachal Pradesh Value Added Tax (Seventh) Amendment Rules, 2012 subject to issue of Entitlement Certificate in Form-XLIII by the Assessing Authority of the district concerned (district incharge).
Provided that no certificate in Form-XLIII shall be issued by the Assessing Authority of the district (district incharage) unless the application for the grant of the same is accompanied by the certificate in Form-XLIV obtained by such entrepreneur from the concerned General Manager, District Industries Center of the Department of Industries of Government of Himachal Pradesh where the Industrial unit is registered or in other cases from Director of Industries, Himachal Pradesh or his nominee duly authorised by him in this behalf:
Provided further that the application for the grant of Entitlement Certificate shall not be entertained by the Assessing Authority of the district (district incharge) unless it is accompanied by a deposit receipt of Rs. 500/- in the Government Treasury or payment made online through the website of the Excise and Taxation Department under head of account 0040-tax on sales, trade etc.-800- other receipts-03-other receipts.
(vi) The tax shall be levied at full rates notified under sub-section (1) of section 6 of the Himachal Pradesh Value Added Tax Act, 2005 (hereinafter referred to as the 'Act' if any of the certificates in Form-XLIII and Form-XLIV, as the case may be, is found to be false, incomplete or defective or is not furnished with return under the Act.
98. Entitlement Certificate under this Chapter.-
To avail concessional tax rate on the purchase of industrial inputs, raw-material and packing material by manufacturers for use as raw material to manufacture goods for sale in Himachal Pradesh or sale in the course of inter-State trade or commerce or export out of the territory of the country except Breweries, Distilleries, Non-Fruit Based Wineries and Bottling Plants (both for Country Liquor and Indian Made Foreign Liquor) shall be subject to issue of Entitlement Certificate by Assessing Authority of the district concerned (district incharge) after receipt of certificate in Form-XLIV from General Manager, District Industries Center where the unit is registered or in other cases by the Director of Industries, Himachal Pradesh or his nominee duly authorised by him in this behalf.
99. Recovery of tax, penalty and interest.-
Notwithstanding anything to the contrary contained in any law, any amount of tax and penalty including interest, if any payable by the dealer on account of breach of any of the conditions and restrictions specified in Himachal Pradesh Value Added Tax (Seventh Amendment) Rules, 2012 shall be recoverable by the Assessing Authority of the district (district incharge) which shall be empowered to enforce recovery of tax, penalty and interest by way of disposing of goods in stock or any other movable property of the dealer concerned.
100. Power to amend, suspend, restore and cancel Entitlement Certificate.-
The Assessing Authority of the district (district incharge) shall be empowered to amend, suspend, restore and cancel the Entitlement Certificate granted to the dealer, if it is satisfied that a breach of any of the conditions of the Himachal Pradesh Value Added Tax (Seventh Amendment) Rules, 2012 has been committed subject to any order of the higher authority competent to pass such order under the Act. No such order shall be passed without affording a reasonable opportunity of being heard to the dealer.
101. Levy of penalty under this Chapter.-
Whosoever, contravenes any of the provisions of the Himachal Pradesh Value Added Tax (Seventh Amendment) Rules, 2012, with an intention to evade tax, the Assessing Authority of the district (district incharge) shall impose by way of penalty a sum not less than fifty percentum of the amount of tax due but which shall not exceed hundred percentum of the amount of tax due after giving such dealer an opportunity of being heard.
102. Compounding of offences under this Chapter.-
The Assessing Authority of the district (district incharge) may compound other offences in which no tax evasion is involved by levy of penalty of rupees five hundred for each such contravention. No penalty shall be levied without affording a reasonable opportunity of being heard to the dealer.
103. Submission of Form-XLIII and XLIV with returns.-
Every dealer who has been issued an Entitlement Certificate in Form-XLIII shall submit the copies of the same and certificate in Form-XLIV with the monthly/quarterly /annual return for the assessment year.
3. Addition of Forms.-
In the said rules, after Form XLII the following Forms shall be added, XLIII and XLIV. namely:-
"FORM –XLIII
(See Rule 97, 98,100 and 103)
ENTITLEMENT CERTIFICATE
[To be issued by the Assessing Authority of the district concerned (district incharge)]
No.___________
This is to certify that M/s ______________________________________ (name and address of the entrepreneur/Industrial Unit), who has furnished a certificate in Form-XLIV from the concerned General Manager, District Industries Centre of the Department of Industries of the Government of Himachal Pradesh where the industrial unit is registered or in other cases from Director of Industries, Himachal Pradesh or duly authorized by him in his behalf, as the case may be, has been registered as a dealer under the Himachal Pradesh Value Added Tax Act, 2005/ Central Sales Tax Act, 1956 with Registration Certificate No. ____________________ in ______________ District, Himachal Pradesh. The Entitlement Certificate is being issued in favour of the aforesaid entrepreneur/industrial unit after examining the certificate in Form-XLIV and after going through the relevant provisions of the aforesaid Acts and rules framed thereunder.
2. This is further to certify that as per this Entitlement Certificate bearing Registration No. _______________issued on _________(dated), the entrepreneur/industrial unit may purchase the goods specified below (other than those listed under entry no. 55 of Part-II-A of Schedule 'A' for use by him as industrial inputs, raw materials and packing materials in the manufacture in Himachal Pradesh of any goods for sale in the State of Himachal Pradesh, or for sale in the course of inter-State trade or commerce or export outside the territory of India.
DESCRIPTION OF GOODS
(Other than those already listed under entry no. 55 of Part-II-A of Schedule 'A')
.
3. This certificate shall be subject to the following conditions, namely:-
(i) goods must be clearly specified. The expression "and the like" "etc." shall not amount to specification of goods and no concession shall be permissible on account of such expression;
(ii) no amendment in this certificate shall be valid unless ordered and attested by the Assessing Authority of the district concerned (district incharge);
(iii) the holder of this certificate shall surrender it when required to do so by the Assessing Authority of the district concerned (district incharge) or an Appellate or Revisional Authority;
(iv) the certificate or authenticated copy of it shall be produced immediately on demand by any officer of the Excise and Taxation Department not below the rank of Excise and Taxation Officer; and
(v) this certificate shall be obtained once and shall be operational until cancelled;
4. This certificate shall be valid from ………………… (date) until cancelled.
N.B.
The Entitlement Certificate shall be issued by the Assessing Authority of the district concerned (district incharge) after examining the certificate in Form-XLIV issued by General Manager District Industries Centre where the unit is registered or in other cases by Director Industries, the certificate of registration issued to the industrial units under the aforesaid Acts and after going through the relevant provisions of the aforesaid Acts and rules framed thereunder.
FORM-XLIV
(See Rule 97, 98 and 103)
CERTIFICATE
(To be signed and issued by G.M. D.I.C. where unit is registered or in other cases by Director Industries, H.P.)
No………………
This is to certify that M/s ____________________________________________ (name and full address) is registered as an industrial unit in the office of the undersigned against Registration No. _______________ dated____________ for the manufacture of ______________________________________________________ for sale, and that the said industrial unit commenced manufacture of the said goods with effect from __________________ (date).
This is also certified that the aforesaid industrial unit is live and engaged in manufacturing of aforesaid item for sale.
This certificate shall be valid from the date of commencement of production w.e.f. ………………… Until cancelled by the issuing Authority.
NB
This certificate shall be signed and issued by the General Manager, District Industries Centre of the Department of Industries of Government of Himachal Pradesh where the Industrial unit is registered or in other cases by the director of Industries, Himachal Pradesh or other competent authority, as the case may be. "
By order,
Principal Secretary (E&T) to the
Government of Himachal Pradesh