WHEREAS, the State Government is satisfied that it is necessary so to do in the interest of development of industry in remote and hill areas of the State;

NOW, THEREFORE, in exercise of the powers conferred by sub-section (6) of section 4 of the Uttarakhand Value Added Tax Act, 2005 (Act no. 27 of 2005) and rule 11 of Uttarakhand Value Added Tax Rules, 2005 read with rule 5 and 6 of the Uttarakhand Special Integrated Industrial Promotion Policy, 2011 (as amended from time to time), the Governor is pleased to allow, with effect from the date of publication of this notification in the Gazette, the Value Added Tax and input tax reimbursement for the manufacturing industrial units established in remote and hill areas of the State subject to the following terms and conditions:-

1. The classification of District level units and State level units shall be made on the basis of investment in the unit by the industries department and such units shall apply for exemption under industrial policy to the industries department and on the basis of recommendation of District Level Committee/ State Level Committee, the industries department shall furnish information of eligible units to Commercial Tax Department

2. The manufacturing units established in the hill areas shall at the end of the quarter submit quarterly returns of turnover to the Commercial Tax Department by the 10th day of the succeeding month. Thereafter the assessing officer shall examine the return and submit it to the general manager, District Industries Centre by 15th of that month.

3. The General Manager, District Industries/ officer/ institution nominated by industries department shall ensure to make the payment to the Commercial Tax Department by 25th day of the same month from the budget available under the promotion policy for industrial development of remote and hill areas and if the budget is not available, shall send their demand to the SIDCUL/ Directorate. As per the arrangements prescribed in the office order no. 2932/VII-II/ 123-Udyog/ 08/ 2011 dated 18-11-2011 of Uttarakhand Shasan Industries Development Section-2 in relation to manufacturing industries to be established in hill areas, the liability of input tax (payable on purchase within state) and output tax arising on the basis of eligibility as admissible shall be discharged by the SIDCUL from its own account to the Commercial Tax Department on the basis of verification by the concerned assessing officer as SIDCUL which is a nominated Institution of the Industrial Department keeps money in sufficient quantity at all time.

4. Under the Uttarakhand VAT Act, 2005 the maximum limit of reimbursement shall be in accordance with the Uttarakhand Special Integrated Industrial Promotion Policy, 2011 (as amended from time to time).

5. If the reimbursement is not made in time owing to the return not having been submitted to the Commercial Tax Department up to the 10th day of the succeeding month of the quarter, liability of interest as prescribed by the Commercial Tax Department shall be that of the concerned industrial unit.

6. The industries department or the institution nominated by it shall submit the said return to the Commercial Tax Department by 25th of the same month.

7. The reimbursement of input tax paid by the industrial unit on the purchases made from the registered dealers within the State shall be made by the industry department on the basis of the certificate issued by the assessing officer in respect of input tax after assessment and on the basis of certification issued after joint inspection by the officers of the industries department and Commercial Tax Department.

8. If for any reason, the manufacturing industrial units fails to submit the quarterly return in time, it may, with prior permission of the Commissioner Commercial Tax or any other officer authorised by him, submit the return with late fee and interest within the time prescribed by him.

9. A certain estimated amount shall be made available in advance to the General Manager of industries/ institution nominated by industries department of hill districts to ensure the payment of reimbursement in time.

10. Such units, whose input tax exceeds the output tax even after one year of start of production, shall not be eligible for reimbursement.

11. The industries to be established in remote hill areas under Uttarakhand special integrated industrial development promotion policy, 2011 (as amended from time to time), whose annual turnover exceed Rs. 50 lakhs, shall also submit tax on quarterly basis as stipulated in the provisions of industrial policy.

12. Besides, the claims relating to sanction/ distribution of VAT and input tax reimbursement of concern units shall be annually reviewed jointly by the officer of the Commercial Tax Department and Industries Department. The review of District level units shall be made by the General Manager Industries Department and concerned Assistant Commissioner/ Deputy Commissioner of Commercial Tax Department and in case of State level units the review shall be done jointly by the Director Industries and Additional Commissioner Commercial Tax of related zone respectively.

(RADHA RATURI)

SECRETARY.