Section 5 in The Rajasthan Sales Tax/Central Sales Tax Deferment Scheme for Industries, 1998
5. General Terms and Conditions for Deferment of Sales Tax.
(a)For the purpose of arriving at the limit of the tax deferment as provided in Annexure-B, the aggregate of the following shall be considered:-(i)Aggregate amount of tax which would have been leviable under the provisions of the Rajasthan Sales Tax Act, 1994;(ii)Aggregate amount of tax would have been leviable under the provisions of the Central Sales Tax Act, 1956;(iii)Aggregate amount of any surcharge, fee, duty, or any other levy of tax by whatever name to be levied on sales of the manufactured goods; and(iv)Aggregate amount of tax as and when levied on consignments.(b)All assets of the industrial unit to whom the benefits under this Scheme are sanctioned, shall stand pledged automatically and without any documentation, to the Government of Rajasthan on the date of issue of the Eligibility Certificate to such unit.(c)An industrial unit covered by this Scheme shall be entitled to claim benefits under it, only if it provides employment to bonafide residents of Rajasthan to the extent at least 70% of its work force (both skilled and unskilled put together) in a phases manner, i.e. at least 30% in the first year, upto 50% in the second year and upto 70% in the third year.(d)The industrial unit shall not make sales outside the State or effect branch transfers or resort to consignment sales (other than inter-State sales), in excess of 25% of its production in a financial year during the period in which exemption from tax is availed of by it under this Scheme.(e)(i)During the period in which the benefits under this Scheme are availed of by an industrial unit, such unit shall be liable to pay that part of tax which is not eligible for deferment under Annexure-B, in accordance with the relevant provisions of the RST Act/CST Act, and where such unit fails to make such payment, the Assessing authority having jurisdiction shall be empowered to initiate legal action against such unit.(ii)The repayment of deferred amount of tax shall be made as specified in Annexure-C to this notification.(iii)Where a unit fails to pay any instalment as specified in Annexure-C, then, after the expiry of a period of thirty days from the date of such default, the total out-standing deferred amount of tax shall become recoverable from such unit immediately as arrears of land revenue with interest at the rate specified in the RST Act from the date of the default, however, the said period of thirty days may be extended on sufficient grounds upto sixty days by the Commissioner, Commercial Taxes.(f)Where the limit of tax deferment specified in Annexure-B is exhausted, tax on all intra-sales/inter-State sales made thereafter shall be payable in time in accordance with the provisions of the RST Act/CST Act without deferment and the industrial unit shall become liable to discharge all obligations and duties relating to taxability laid down in the RST Act/CST Act and prescribed in the rules, as if, there were no Deferment Scheme applicable to its case.(g)Notwithstanding anything contained in this Notification, but subject to such conditions as the State Government may, by general or special order specify, where an industrial unit to whom benefit by way of deferment of tax has been granted under this Scheme, and where a loan liability equal to the amount of tax deferred has been raised by RIICO/RFC or Industries Department, them such deferred tax shall be deemed in the public interest, to have been paid.(h)An industrial unit after having availed of the benefits under this Scheme, shall have to continue its annual production for a period of five years after the expiry of the period during which deferment of tax is availed of by it, not allow the level of average annual production for the period during which the benefits under this Scheme was availed of.(i)An industrial unit after having availed of the benefits under this Scheme, shall not make sales outside the State including branch transfers of the products (other than inter-State sales) manufactured by it exceeding 50% thereof in a financial year for a period of five years after the expiry of the period during which exemption from tax is availed by it.(j)Wherever an industry is included in the list of ineligible industries in Annexure 'a' on any date during the period of operation of this Scheme, the units of such industry-(i)of which the application for sanction of the benefits are pending before any Screening Committee, on the said date;(ii)which have been sanctioned benefits under this Scheme before the said date; or(iii)which have already been availing of benefits under this Scheme on such dateshall be entitled to avail full benefits in accordance with the provisions of this Scheme.(k)(i)Where the Assessing Authority, having jurisdiction under the Act, either sou moto or on receipt of an application in this behalf, and after affording an opportunity of being heard to the industrial unit concerned, if he is satisfied that a breach of any of the conditions specified in sub-clauses (c), (d), (h) and (i) of clause 5 has been committed, shall obtain prior permission in writing of the Commissioner, Commercial Taxes before taking legal action under the provisions of the amount of deferred tax with interest. However, the Commissioner, in case he concurs with the findings of the Assessing Authority, shall place the matter before SLSC for decision.(ii)The interest levied in sub-clause (k)(i) could be waived by the competent authority in accordance with the provisions of section 54 of the RST Act.
