WHEREAS the Government of Gujarat considers it necessary so to do in the public interest to give effect to the tax incentives as declared vide the Government of Gujarat, Industries and Mines Department Resolution No. TEX/102012/65117/T, dated 25th June, 2013 and Resolution No TEX/102013/432/T dated 11th October, 2013.
NOW, THEREFORE, in exercise of the powers conferred by sub-section (1) of section 40 of the Gujarat Value Added Tax Act, 2003 (Guj. 1 of 2005), the Government of Gujarat hereby authorizes the Commissioner to grant refund to the eligible unit, of the amount of tax separately charged by a registered dealer from whom he has purchased the taxable goods, subject to the following conditions, namely:-
1. The eligible unit shall be granted refund of the tax paid or payable to the selling dealer on its purchases of the goods to be used as raw materials in its industrial unit for which it has obtained the Eligibility Certificate, in the manufacture of the specified goods for,-
(i) sale within the State of Gujarat or outside the State of Gujarat or for export or as packing material in the packing of the goods so manufactured, or
(ii) dispatch either to its another unit or division situated within the State for use in the manufacture of specified goods for sale by such another unit or division or to its another unit or division situated outside the State of Gujarat.
2. The eligible unit shall apply within 120 days from the date of issuance of Eligibility Certificate, in Form TEX-1 appended to this notification, to the competent authority for the grant of a Certificate of Entitlement. Such application shall be accompanied by the original Eligibility Certificate issued to the eligible unit by the appropriate authority.
3. On receipt of application, the Commissioner may issue to the eligible unit a Certificate of Entitlement, in Form TEX-2 appended to this notification, effective from the date of commercial production as mentioned in the Eligibility Certificate issued by the Industries Commissioner, Government of Gujarat subject to the terms and conditions of the respective Government Resolutions, on the basis of which the eligible unit was granted the Eligibility Certificate.
4. The Certificate of Entitlement shall contain the details regarding the date from which the incentives commence, the quantum of tax incentives and the date upto which the incentives are admissible as above in the Eligibility Certificate issued by the appropriate authority.
5. The eligible unit having additional place or places of business within the jurisdiction of a Commercial Tax Officer or different Commercial Tax Officers shall not be entitled to obtain permission to furnish separate declarations or returns for each such place of the concerned Commercial Tax Officer and shall be liable to furnish consolidated declarations or returns for each such place of the concerned Commercial Tax Officer and to maintain specific and separate details about purchases, production and sales effected at the respective place of business.
6. If the eligible unit has a separate place of business for the purpose of the incentives under this notification, he shall obtain a separate registration certificate for each place of Business and shall keep and maintain separate books of accounts for each place of business.
7. (i) if the eligible unit contravenes any condition of this notification or any of the provisions of the Gujarat Value Added Tax Act, 2003 or the Rules made there under, the Certificate of Entitlement issued to him by the competent authority under this notification shall be liable to be suspended for a period not exceeding six months and purchases and sales by the eligible unit shall cease to entitle for incentives under this notification and the unit shall be liable to pay tax as a normal dealer during the period of suspension and such period shall be deducted from the total period of incentives specified in the Certificate of Entitlement, and
(ii) if the eligible unit continues such contravention for which the certificate of entitlement has been suspended, then the Certificate of Entitlement shall be liable to be cancelled and on such cancellation, the incentives under this notification shall cease to operate. Accordingly, the entire amount of tax that would have been payable on sales and purchases effected by the eligible unit but for the incentives given under this notification, shall be paid by the eligible unit into the Government Treasury within a period of sixty days from the date of contravention, and on failure to do so, said amount shall be recovered from the eligible unit as an arrears of land revenue.
8. The eligible unit shall be eligible for tax incentives to the extent of the monetary limits and within the time limit, whichever expires earlier, specified in the Eligibility Certificate issued by the appropriate authority.
9. (i) If the eligible unit transfers, sells or otherwise disposes of in any manner any of its eligible assets without a written permission of an appropriate authority during the period of incentives, the incentives under this notification shall cease to operate. Accordingly, the entire amount of tax that would have been payable on the sales and purchases effected by the unit but for the incentives given under this notification, shall be paid by the eligible unit into the Government Treasury within sixty days from the date of sales, transfer or otherwise disposal of the assets, along with the interest at the rate of 18% per annum. On failure of the unit to do so, the entire amount along with the interest shall be recovered as an arrears of land Revenue.
(ii) If the eligible unit transfers his business in whole by sale to another dealer with a written permission of an appropriate authority during the period of incentives and the business continues at the same industrial unit for which the eligibility certificate was obtained, then the incentives under this notification shall continue to operate to the transferee of such business subject to the conditions of this notification or conditions of the Government Resolution, dated the 25th June, 2013, of Industries and Mines Department.
10. The eligible unit shall be allowed to avail the tax incentive for each year or part of the year to the extent of 12.5 percent of the total monetary ceiling of the tax incentives as mentioned in the Eligibility Certificate issued by the appropriate authority if such incentives limit exhausts during the year, the eligible unit shall be liable to pay tax forthwith from the date of exhaustion of incentives limit, in with the provisions of the Gujarat Value Added tax Act, 2003 till the end of such year. Any unavailed tax incentives during any year can be availed in any of the following year.
For the purpose of arriving at the limit of incentives of the eligible unit availing tax incentive for each year or part of the year, the aggregate of following shall be considered, namely:-
(i) The aggregate amount of refund of the tax paid to the eligible unit under clause 1 of this notification.
(ii) The aggregate amount of reimbursement of tax granted to the eligible unit under Government Resolution Industries and Mines Department No. TEX/102013/432/T dated the 11th October, 2013.
Explanation:- For the purpose of this clause , the expression "Year" means a period of twelve months commencing from the date of commercial production.
11 The provisional refund shall be granted in accordance with the provisions of section 37 of the Gujarat Value Added tax Act, 2003 and rule 37 of the Gujarat Value Added tax Rules, 2006.
12 The eligible unit shall not be entitled to claim tax credit on the purchases for which the amount of tax refunded under the Gujarat Value Added Tax Act, 2003.
13 The refund shall not be claimed by eligible unit until he receives from a registered dealer from whom he has purchased taxable goods, a tax invoice (in original) containing particulars as has been prescribed under sub-section (1) of section 60 of the Gujarat Value Added tax Act, 2003, evidencing the amount of tax.
14 The refund shall be allowed after reducing the amount of tax calculated at the rate of four per cent, for each of the following, on the taxable turnover of purchases within the state of the goods which are -
(i) used as raw materials in the manufacture or in the packing of goods so dispatched outside the State in the course of branch transfer or consignment or to his agent outside the State,
(ii) fuels used for the manufacture of goods.
15 The refund shall be allowed after reducing the amount of tax calculated at the rate of two per cent on the taxable turnover of purchases within the state of the goods other than cotton which are used as input including raw material in the manufacture of goods which are sold in the course of interstate trade and commerce.
16 The refund to the eligible unit shall not be allowed of the goods which are -
(i) resold,
(ii) used as fuel in generation of electrical energy including captive power,
(iii) not connected with its business,
(iv) used as fuel in motor vehicles, or
(v) petrol, high speed diesel. crude oil and lignite
(vi) used for purposes other than those specified under the sub-clause (i) or (ii) of clause 1.
17 Where a eligible unit without entering into a transaction of sale, issues to another registered dealer tax invoice, retail invoice, bill or cash memorandum with the intention to defraud the Government revenue or with the intention that the Government may be defrauded of its revenue, the Commissioner may, after making such inquiry as he thinks fit and giving a reasonable opportunity of being heard, deny the benefit of refund, in respect of such transaction, to such eligible unit accepting such tax invoice, retail invoice, bill or cash memorandum either prospectively or retrospectively from such date as the Commissioner may, having regard to the circumstances of the case, fix.
18 The unit taking up expansion to whom a Certificate of Entitlement has been issued under this notification, shall be granted refund of the tax paid on purchases of taxable goods used in the manufacture of all the specified goods including manufactured by the existing machinery.
19 Notwithstanding anything contained in this notification, the amount of refund to an eligible unit, of tax on any purchase of goods made from the dealer shall not exceed the amount of tax in respect of the same goods, actually paid, under the Gujarat value Added Tax Act, 2003, in to Government Treasury.
Explanation. - For the purpose of this notification,-
(i) the expression "eligible unit" shall mean an industrial unit eligible for tax incentives which has obtained Eligibility Certificate from the Industries Commissioner under Gujarat Textile Policy-2012, issued under the Government of Gujarat, industries and Mines Department Resolution No. TEX/112012 /55117/T, dated 25th June, 2013 and the Certificate of Entitlement from re the Commissioner of Commercial Tax, under this notification.
(ii) the expression "specified goods" means the goods specified and the goods relate- to the activities mentioned in the Eligibility certificate obtained by the eligible unit from the Industries Commissioner.
(iii) the expression "Competent Authority" shall mean Deputy Commissioner of Commercial Tax having jurisdiction over the place of business of the eligible unit.
(iv) the expression "appropriate authority" shall mean Industries Commissioner, Gujarat State.
FORM-TEX 1
Application for Certificate of Entitlement
I .............................................do hereby certify that the details shown in the application is true and correct.
FORM TEX-2
Certificate of Entitlement
Conditions:-
(1) This certificate is issued subject to the conditions prescribed under this notification.
(2) This certificate shall cease to operate immediately on expiry of monetary limit of the unit or time limit, whichever is earlier.
By order and in the name of the Governor of Gujarat,
C. J. Mecwan
Deputy Secretary to Government.