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Thread: Meaning of Package Scheme Of Incentives in Maharashtra Value Added Tax (Maharashtra VAT)

  1. #1
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    Default Meaning of Package Scheme Of Incentives in Maharashtra Value Added Tax (Maharashtra VAT)

    Meaning of Package Scheme Of Incentives in Maharashtra Value Added Tax (Maharashtra VAT)

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    Default Definitions under Chapter XIV in Maharashtra VAT

    Definitions under Chapter XIV in Maharashtra VAT

    88. Definitions under Chapter XIV. – In this chapter, unless the context requires
    otherwise,—
    (a) “Certificate of Entitlement” means a certificate issued by the Commissioner in respect of sales tax incentives under the relevant Package Scheme of Incentives;
    (b) “District Industries Centre” in relation to any eligible unit means the District Industries Centre established by the State Government in a district, in which the concerned Eligible Unit is situated;
    (c) “Eligibility Certificate” means a certificate granted by the SICOM SICOM or the Directorate of Industries or the relevant Regional Development Corporation or the District Industries Centre concerned or the Maharashtra Tourism Development Corporation or the Maharashtra Energy Development Authority in respect of sales tax incentives under the relevant Package Scheme of Incentives designed by the State Government;
    (d) “Eligible Unit” means the Industrial Unit in respect of which an Eligibility Certificate is issued;
    (e) “Package Scheme of Incentives” means the 1979, 1983, 1988 or 1993 Package Schemes of Incentives introduced by the Industries, Energy and Labour Department, the Package Scheme of Incentives for Tourism 1993, Electronic Scheme 1985 and the New Package Scheme of Incentives for projects 1998for projects 1998, introduced by the Home and Tourism Department and the Power Generation Promotion Policy 1998 introduced by the Industries, Energy and Labour Department, all as amended, from time to time;
    (f) “the Relevant Regional Development Corporation” means,—
    (i) in relation to the Vidarbha area of the State, the Development Corporation of Vidarbha Limited, a Government Company registered under the Companies Act, 1956;
    (ii) in relation to the Konkan revenue division excluding the City of Mumbai and the Mumbai Suburban District, the Development Corporation of Konkan Limited, a Government Company registered under the Companies Act, 1956;
    (iii)in relation to the Marathwada area of the State, the Marathwada Development Corporation Limited, a Government Company registered under the Companies Act, 1956; (iv)in relation to the rest of Maharashtra, the Western Maharashtra Development Corporation Limited, a Government Company registered under the Companies Act. 1956;
    (g) “SICOM” means the State Industrial and Investment Corporation of Maharashtra Limited, a Government Company registered under the Companies Act, 1956.
    (h) “Maharashtra Tourism Development Corporation” means a Government Company registered under the Companies Act, 1956;
    (i) “Maharashtra Energy Development Authority” means a society registered by the name “the Maharashtra Energy Development Authority” under the Societies Registration Act, 1 860, under the Societies Registration Act, 1860.

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    Default Grant of Certificate of Entitlement in Maharashtra VAT

    Grant of Certificate of Entitlement in Maharashtra VAT

    89. Grant of Certificate of Entitlement –
    (1) Where an Eligibility Certificate has been recommended to an Eligible Unit by the implementing agency under any of the Package Scheme of Incentives declared by the State Government, such Eligible Unit may apply for grant of Certificate of Entitlement to the Commissioner.

    (2) Subject to the provisions of this Act, and any rules that may be made in this behalf, the Commissioner shall, if the Eligible Unit satisfies such further requirements as may be prescribed, issue, subject to such conditions, as may be prescribed to the unit a Certificate of Entitlement.

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    Default Cancellation of Certificate of Entitlement in Maharashtra VAT

    Cancellation of Certificate of Entitlement in Maharashtra VAT

    90. Cancellation of Certificate of Entitlement –
    Notwithstanding anything contained in this Act, the Certificate of Entitlement issued in favour of an Eligible Unit by the Commissioner whether before or after the appointed day, in respect of any Package Scheme of Incentives,¬—
    (a) shall be deemed to have been automatically cancelled on the date on which,¬—.
    (i) the incentives including the cumulative quantum of benefits availed whether before or after the appointed day exceed the monetary ceiling fixed for the Eligible Unit; or
    (ii) the period for which a Certificate of Entitlement was granted to an Eligible Unit, expires; or
    (iii) the Certificate of Registration granted to an Eligible Unit has been cancelled; or
    (b) shall be cancelled by the Commissioner, after giving the Eligible Unit an opportunity of being heard, if it is noticed that the grant of Certificate of Entitlement is inconsistent with any of the provisions of this Act, or, as the case may be, the Bombay Sales Tax Act. 1959 rules or notifications or any provision of the relevant Package Scheme of Incentives or , if the unit contravenes any of the provisions of the relevant Scheme .

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    Default Change in the nature of incentives in Maharashtra VAT

    Change in the nature of incentives in Maharashtra VAT

    91. Change in the nature of incentives –
    (1) Where any Certificate of Entitlement has been granted to any unit under any Package Schemes of Incentives and such unit is entitled to receive benefits for any period which is to end after the appointed day then, notwithstanding anything contained in the said scheme, the benefits shall he availed of only in accordance with this Act, rules and the notifications issued there under.

    (2). The Commissioner may, notwithstanding anything contained in section 32, in respect of a dealer to whom an Entitlement Certificate for availing of the benefits by way of deferment of Government dues has been granted, extended the date of payment or grant a moratorium for payment of the dues or provide for the payment of dues thereafter in instalments, subject to such conditions as may he prescribed.
    Provided further that no interest under section 30 shall be payable by a dealer to whom an Entitlement Certificate has been granted and for whom the due date of payment has been extended, moratorium has been granted or installments have been granted and payments have been made accordingly.”

    (3) In order to determine whether the cumulative quantum of benefits received by any dealer to whom an Entitlement Certificate for availing of benefits by way of exemption from payment of Government dues has been granted, has exceeded the relevant monetary ceiling under any Package Scheme of Incentives, the Commissioner shall calculate the cumulative quantum of benefits in the manner prescribed and for this purpose he shall take into account the benefits received, if any, by the said dealer prior to the appointed day.

    (4) If it is found that the cumulative quantum of benefits calculated in respect of any dealer has exceeded the relevant monetary ceiling, where such ceiling is provided in the relevant Package Scheme of Incentives, then the Commissioner shall require the dealer by order in writing to pay the tax, interest or penalty in respect of each relevant period and shall for the purposes of recovery of such Government dues, serve on the dealer a notice as provided under section 32:

    Provided that, no order under this section shall be passed without giving the dealer reasonable opportunity of being heard.

    (5) Notwithstanding anything contained in this Act, the rules made hereunder or any Package Scheme of Incentives,—
    (i) no dealer to whom on Entitlement Certificate other than an Entitlement Certificate granted under the new package scheme of incentives for Tourism Projects, 1999 has been issued, whether in order to avail the benefits by way of deferment or payment or exemption from payment of Government dues, shall be entitled to claim set¬off of sales tax in respect of purchases of raw materials effected by the said dealer and for the purposes of this section, the expression raw materials’ shall have the meaning assigned to it in the rules;
    (ii) every dealer to whom the Entitlement Certificate other than an
    Entitlement Certificate granted under the new package scheme of incentives for Tourism Projects, 1999 has been issued, whether in order to avail the benefits by way of deferment of payment or exemption from payment of Government dues shall be entitled to claim in accordance with the rules, refund of sales tax in respect of purchases of raw materials;
    (iii) (………..)

    (In above section 91 in sub¬section (5), for the words “Entitlement Certificate”, at both the places where they occur, the words and figures “Entitlement Certificate other than an Entitlement Certificate granted under the new package scheme of incentives for Tourism Projects, 1999” are substituted and shall be deemed to have been substituted with effect from the 1st April 2005 by Maharashtra Act No. XXV of 2007 dt. 06.08.07)

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    Default Annual ceiling on benefits to be availed of under Package Scheme of Incentives in Maharashtra VAT

    Annual ceiling on benefits to be availed of under Package Scheme of Incentives in Maharashtra VAT

    92. Annual ceiling on benefits to be availed of under Package Scheme of Incentives –
    (1) Notwithstanding anything to the contrary contained in any of the Package Scheme of Incentives, no Eligible Unit to whom the Eligibility Certificate has been granted shall be eligible to draw the benefits in any year after the appointed day, in respect of the production in excess of the annual production capacity of that unit as may be prescribed by the State Government, having regard to the licensing provisions, as they stood from time to time, under the Industries (Development and Regulation) Act. 1951, as applicable during the relevant period, as that Act stood during the relevant time.

    (2) The benefits availed of by any Eligible Unit in contravention of sub¬section (1) shall be and shall be deemed to have been withdrawn and such Unit shall be liable to pay the tax including penalty and interest in respect of sales or purchases, in so far as they relate to such excess production referred to in sub¬section (1).

    (3) A unit holding a Certificate of Entitlement shall not be entitled to claim or receive any incentives towards,¬
    a) a sale made by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract
    b) a sale made by transfer of right to use any goods for any purpose (whether or not for a specified period)for cash, deferred payment or other valuable consideration.

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    Default Proportionate incentives to an Eligible Unit in certain contingencies in Maharashtra VAT

    Proportionate incentives to an Eligible Unit in certain contingencies in Maharashtra VAT

    93. Proportionate incentives to an Eligible Unit in certain contingencies –
    (1) Notwithstanding anything to the contrary contained in any Package Scheme of Incentives, any Eligible Unit, to whom the Eligibility Certificate has been granted, shall be eligible to draw the benefits in any year after the appointed day, only on that part of its turnover of sales or purchases as may be arrived at by applying the ratio as may be prescribed by the State Government to the total turnover of sales and purchases of the said unit in that year and different ratios may he prescribed for different classes of units and different schemes.

    (2) The benefits, if any, availed of by an Eligible Unit in contravention of sub¬section (1), if any, shall be and shall be deemed to have been withdrawn and such unit shall be liable to pay tax including penalty and interest, if any, in respect of the turnover of sales and purchases in excess of the turnover arrived at under sub¬section (1) and accordingly any benefit which is so availed shall be recovered as arrears of tax as provided in sub¬section (3).

    (3) For recovery of arrears of tax, the Commissioner shall require the Eligible Unit, by order in writing, to pay the tax, interest and penalty on such turnover on which the benefits are not available and serve on the dealer, a notice of demand as provided in sub¬section (4) of section 32 accordingly:

    Provided that, no order under this section shall be passed without giving the Eligible Unit a reasonable opportunity of being.

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    Default Deemed payment in Maharashtra VAT

    Deemed payment in Maharashtra VAT

    94. Deemed payment –
    (1) Notwithstanding anything contained in this Act, rules or notifications, but subject to such conditions as the Commissioner may, by general or special order in the Official Gazette, specify, where a dealer to whom incentive by way of deferment of sales tax liability under any of the Package Schemes of Incentives designed by the State Government, have been granted by virtue of the Eligibility Certificate, and where a loan liability equal to the amount of any such tax payable by such dealer has been raised by the SICOM or the Directorate of Industries or the relevant Regional Development Corporation or the District Industries Centre concerned (………)then such tax shall be deemed, in the public interest, to have been paid.

    (2) Notwithstanding anything to the contrary contained in the Act or in the rules or in any part of the Package Scheme of Incentives the Eligible Unit to whom an Entitlement Certificate has been granted for availing of the incentives by way of deferment of sale tax or purchase tax, as case may he, may, in respect of any of the periods during which the said certificate is valid, at its option. prematurely pay in place of the amount of tax deferred by it, an amount equal to the net present value of the deferred tax, as may be prescribed, and on making such payment. the deferred tax shall be deemed in the public interest to have been paid.

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