RULES FOR GRANT OF SALES TAX REIMBURSEMENT -2003                

1.               Title :

(i)              These rules shall be called “Rules for Grant of Sales Tax          Reimbursement-2003”.

(ii)             These rules shall be applicable to Small Scale Industrial (SSI) units which commence production between 1st April, 2003 and 31st March, 2007. 

2.       Eligibility & Quantum of Assistance: 

2.1   Following categories of units shall be eligible for Sales Tax Reimbursement under these rules:

i)                 In respect of units located in industrially backward areas, all new Small Scale Industrial (SSI) units and all new or existing SSI units taking up substantial expansion / modernisation / diversification.

ii)               In respect of units located in other areas new SSI units in approved clusters, priority sectors and ancillary sector and all  new or existing SSI units in approved clusters, priority sectors and ancillary sector undertaking substantial expansion/ modernisation/ diversification.

 

2.2       The eligible small-scale industrial units as mentioned in paragraph 2.1 above shall be entitled to “Sales Tax Reimbursement” for a period of five years equal to the amount of Sales Tax including CST paid by the unit in Orissa on sale of finished goods and entry tax paid to Govt. of Orissa on purchase of raw material including packing material, plant and machinery, pollution control equipment, power generation equipment of 10 KW and above, testing material etc.  subject to a limit of 100% of the eligible fixed capital investment.

2.3     In case of units undertaking expansion the incentive will be available only in respect of sales tax paid for incremental sales of finished goods and entry tax paid on purchase of materials related to incremental production.

2.4           The units who have availed incentives like Sales Tax Exemption / Deferment under any other IPR for such fixed capital investment will not be entitled for availing Sales Tax Reimbursement under this provision.  

3.     Definition  

3.1     Terms and expressions used in these rules but not specifically defined herein, shall have the same meaning as in IPR-2001.

3.2     Satisfactory Working of a unit means that-

a) The borrower account of the unit has not remained overdue at the time of sanction or disbursement for Principal and/or interest; and,

b) The unit has not gone out of production for a period exceeding six months at a time for any reasons other than labour trouble or such other reason as may be considered reasonable beyond the control of the entrepreneur by the sanctioning authority

3.3       New Industrial Unit means an industrial unit which has commenced production between 1st April 2003 and 31st March, 2007 (inclusive of both dates).

3.4     Fixed Capital Investment means, investment in land and building, plant and machinery and other equipment of permanent nature as considered eligible for subsidy in the Rules for Grant of Capital Investment Subsidy for new units or for substantial expansion / modernisation / diversification as the case may be.

3.5    Substantial expansion / modernisation / diversification (E/M/D) means  investment in fixed assets resulting in increase in the installed capacity of its existing products (expansion) or creation of production capacity of items not being now manufactured by the unit, without reducing the installed capacity of existing items (diversification) or technological up-gradation of the production process of the unit(modernization), 

Provided that such investment should have been made under a separate Project Report approved by a registered Financial Institution/Bank and production after completion of E/M/D project should have commenced between 01.04.2003  31.3.2007. (inclusive of both dates)

Provided further that the investment in plant and machinery of such project is at least 33% of the gross (undepreciated) value of plant and machinery of the unit as on date of commencement of investment in E/M/D project

3.6    Industrially backward areas means areas listed as backward areas in Para 14.4 of the Industrial Policy 2001

3.7    Approved Cluster means a group/ cluster of industrial units having similar type of  products and/ or production process, located within  a specific geographical area designated for the cluster for the specified products/processes  as may be approved as a cluster and  notified as such by the Government in Industries Department.

3.8    Ancillary Unit means an ancillary SSI unit registered as such by the Central Public Sector Undertakings of Government of India and such other mother plants as may be decided by the government 

4.       Procedure : 

4.1           Any eligible unit desirous of availing Sales Tax Reimbursement shall apply to the District Industries Centre in the prescribed form as per annexure-I within 120 days from commencement of commercial production alongwith requisite documents. 

4.2           On receipt of application, the G.M.,DIC shall verify  the application, conduct such further enquiries as may be necessary and, if the unit is eligible for assistance, shall  

(a)  Issue sanction order for the eligible amount in prescribed proforma as per annexure-II if  the fixed capital investment of unit does not exceed Rs.25 lakh, with a copy to Director of Industries, Orissa. 

(b)  Forward the application with his recommendation to the Director of Industries if the fixed capital investment exceeds Rs.25 lakh, who in turn shall consider and issue sanction order for units found eligible under the scheme. 

4.3           Units will apply for reimbursement of sales tax to the GM, DIC for each sales tax assessment year separately along with proof of deposit of sales tax. The competent authority shall sanction the eligible amount and disburse the amount to the units though DIC concerned for four years. For 5th year before disbursement, the unit has to furnish final assessment certificate of last four years along with 5th year and no dues certificate from the relevant assessing officer of Commercial Tax Department for disbursement of eligible amount for the 5th year. 

4.4           The G.M.,DIC concerned shall conduct inspection of each unit availing sales tax reimbursement at least once a year and, more often, if necessitated due to reasons to be recorded in writing, to verify that the units continues to fulfil the eligibility conditions. 

4.5           Each eligible unit under  this scheme shall give an undertaking to the effect that it shall intimate the competent authority within fifteen days of any change in facts or circumstances  affecting the eligibility of the unit like disposal of assets, reduction in manpower, change in manufacturing process, sourcing of raw material etc.   

4.6         In the event of any amount of tax paid by the unit, for which it has availed Sales Tax Reimbursement, becoming due for refund/adjustment, it shall be refunded to the State Government to the full extent of reduction of eligible amount of Sales Tax Reimbursement consequent to such order of refund/readjustment. 

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Annexure – I

APPLICATION FOR CLAIMING REIMBURSEMENT OF SALES TAX PAID

 

1.

Name & Detailed Address of the unit

:

 

 

 

2.

Type of Organisation and unit

:

 

 

 

 

(Proprietor / Partner / Managing Director / Managing Partner)

:

 

 

 

 

3.

PMT Registration Number & Date (Certificate to be attached)

:

 

 

 

4.

Date of First Investment on Fixed Assets (Proof to be attached)

:

 

 

 

5.

Whether the unit is in Backward Area / Approved Cluster / Priority / Ancillary Sector

:

 

 

 

6.

Investment as on the date of production

 

 

a)

Land

:

 

b)

Building

:

 

c)

Plant & Machinery

:

 

d)

Working Capital

:

 

e)

Borrowing from OSFC / Banks to be clearly specified.

:

 

 

 

 

7.

Date of Commercial Production

:

 

 

 

8.

Products Manufactured

:

 

 

 

 

 

Sl.

Item

Quantity

Value

 

i.

 

 

 

ii.

 

 

 

iii.

 

 

 

iv.

 

 

 

 

 

 

9.

Registration Number & Date

 

 

OST

:

 

CST

:

 

 

 

10

Year of Claim

:

 

 

 

 

11.

State the Amount of Sales Tax paid (in Rs.) by the entrepreneur to the Sales Tax authority. (Copy of supporting Bill / Challan deposits for claiming reimbursement to be submitted.)

 

 

 

 

 

 

Sl.

Month

Value

Purchase Bill / Challan Number & Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            I Sri _________________________________________s/o ____________________________  at present _______________________ (designation) of ________________________ _______________ (name of the industrial unit) do hereby declare that the facts stated above are true to the best of my knowledge. I request for sales tax incentives in-lieu of sales tax paid on sale of finished products to the registered dealers as per the OST Act, 1947, and entry tax paid on purchase of raw-materials, plant & machinery, packaging materials, pollution control equipment, power generating equipment (not less than 10 KW) & testing equipment. 

Signature of the Proprietor / Managing Partner/

Managing Director / Chief Executive of

M/s.__________________________________

Certificate to be furnished by DIC

            It is certified that M/s. _________________________________________________________ At: ________________________ PO: __________________________ _______                                            Dist.: ___________________________ is eligible for Sales Tax reimbursement for Rs.___________ (in words) Rupees ____________________ ________________________ for the year ___________ which is 1st / 2nd / 3rd / 4th / 5th year of its Commercial Production established                                          in ____________________ District ____________________ sectors and will be entitled to reimbursement of  sales tax paid limited to 100% of Fixed Capital Investment.

General Manager / Project Manager

DIC ________________________

Affidavit (to be submitted by the unit)

            I / We on behalf of M/s. ___________________________________________________ hereby undertake to repay any excess amount availed as sales tax reimbursement by us under this rule for any of the year(s) if found out subsequently.

 

Signature of the Proprietor / Managing Partner/

Managing Director / Chief Executive of

M/s.__________________________________

 

  

Annexure – II

 OFFICE OF THE DISTRICT INDUSTRIRES CENTRE, _________/ DIRECTOR OF INDUSTRIES : ORISSA

* * * * *

Sanction Order 

Order No. ___________/ Date:

 

            Sanction is hereby accorded for payment of reimbursement of sales tax paid for the period from __________ to ___________ 1st / 2nd / 3rd / 4th / 5th year of Rs._____________ (Rupees ___________ _________________________) only in favour of M/s. _______________________________________ Proprietor / Partnership / Company _________________ At: __________________ PO:_____________ Dist.:_________________ under the guidelines approved by State Government in Industries Department vide order no. _____________ dt._____________ . 

General Manager, DIC/Director of Industries, Orissa

Memo No. _____________/Dt.__________

            Copy forwarded to Commissioner, Commercial Taxes, Orissa, Cuttack / Commercial Tax Officer, __________________ for information & necessary action.

 

General Manager, DIC/Director of Industries, Orissa

Memo No. _____________/Dt.____________

            Copy forwarded to M/s. ________________________________________________________ Proprietor / Managing Partner / Managing Director ________________ At: ______________________ PO:_______________ Dist.:_______________ for information.

 

General Manager, DIC/Director of Industries, Orissa

Memo No. _____________/Dt.____________

            Copy forwarded to General Manager / Project Manager, DIC/Director of Industries, for information and necessary action.

General Manager, DIC/Director of Industries, Orissa

Memo No. _____________/Dt.____________

            Copy forwarded to Additional Secretary to Government, Industries Department for information.

General Manager, DIC/Director of Industries, Orissa

Memo No. _____________/Dt.____________

            Copy forwarded to Record Keeper / Guard File for information. 

General Manager, DIC/Director of Industries, Orissa.