Section 2(3) in The Rajasthan Sales Tax/Central Sales Tax Deferment Scheme for Industries, 1998
(3)the second-hand/dismantled machinery purchased by such unit shall have a residuary life of at least ten years, as certified by an approved valuer.Explanation. - Installation expenditure capitalised for plant and machinery shall be considered for eligible fixed capital investment;(iv)Capitalised interest during construction not exceeding 5% of the total fixed capital investment.(v)Technical know-how fees or drawing fees as agreed upon and paid either in lump sum or in instalments or by way of equity or debenture or royalty to foreign collaborators or foreign suppliers as approved by the Government of India, or paid to laboratories recognised by the Central Government or the State Government, subject to maximum of 5% of the total value of the plant and machinery;(vi)Rail siding, rolling stock, rakes and railway engines owned by the unit and being used for the purpose of the project;(vii)Plant for pollution control measures including facility for collection/treatment and disposal of effluents, or marble/granite slurry, or hazardous wastes;(viii)Investment on creating in-house training facilities for workers and design development not exceeding 1% of the plant and machinery;(ix)Quality control equipment, research and development equipment and information technology equipment, not exceeding 2% of the investment in plant and machinery, and(x)Miscellaneous fixed such as electrical items like transformers, cables, starters, control panels, AC plant, weighing scale.Explanation. - I. Working capital (whether raised through banks or otherwise and including working capital margin), goodwill fees, royalties capitalised or otherwise, pre-operative expenses on cars and vans shall not be considered as eligible fixed capital investment, however commissioning expenses, engineering fees and expenses incurred on goods transporting vehicle, upto 5% of the total fixed capital investment, shall be considered as eligible fixed capital investment.II. In case of a new industrial unit covered by clause (k)(ii) the depreciated value of the fixed assets on the date of its purchase or lease, as the case may be, shall be considered as eligible fixed capital investment.III. In case of sick units, following investment shall be considered as eligible fixed capital investment.(a)In case of sick units, the depreciated value of fixed assets on the date of declaration of sickness by the Board for Industrial and Financial Reconstruction (BIFR) in BIFR cases and by the State level Committee or the appropriate District Level Committee, in the Industries Department, in non-BIFR cases and the new investment made on the construction of new building and the new investment made on the purchase of additional new plant and machinery.(b)In case of units sold by the State Government, or RIICO, or RFC, value of the fixed assets on which the unit was purchased by the enterpreneur and the new investment made on construction of new building and the purchase of additional new plant and machinery.(f)"Eligible Area" means area other than the Banned Area".(g)"Expansion" means the increase in the value of fixed capital investment by not less than 25% of the net fixed assets of the original project and accompanied by an increase in the production to the extent of at least 25% of the installed capacity. However, for second or subsequent expansion, the fixed capital investment in the original project together with the investment(s) upto the immediate preceding expansion, shall be considered as the basis for the purpose of the proposed expansion.Explanations. - I. The benefits of expansion under this Scheme shall be admissible to the eligible units only after they have achieved and actually utilised at least 80% of their installed capacity in an immediately preceding one completed year before making investment on expansion.II. The benefits for expansion under this Scheme shall be available only on the production in excess of 80% of the installed capacity.(h)"Ineligible Industries" means the industries listed in Annexure 'a' to this Notification, which shall not be eligible for the benefits under this Scheme, however, this restriction shall not apply to sick industrial units as defined in this clause.(i)"Installed Capacity" means the capacity mentioned in the original project report appraised by a Financial Institution and in case of self-financed unit, as certified by the Commissioner of Industries or any other authorised by him.(j)"Large Scale Unit" (LSI) means an industrial unit which is not a Small Scale Unit or of which investment in plant and machinery exceeds the investment specified for Small Scale Unit.(k)(i)"New Industrial Unit" means an industrial unit which commences commercial production during the operative period of this Scheme including a unit set up on the site of existing industrial unit by making separately identifiable capital investment; subject however, that where an industrial unit manufacturing the same product is established on the site of an existing unit, the benefit permissible for a new unit shall be available to it only on the production in excess of 80% of the installed capacity of the existing unit.(ii)"New Industrial Unit" shall also include a sick unit-(a)which has not availed of any benefits of exemption from tax or deferment of tax;(b)which has been appraised by financial institution and appropriate rehabilitation plan has been formulated, and(c)which has been purchased by a new management other than by way of collusive transfer and such management has made additional fixed capital investment not less than 25% of the depreciated value of the assets of such unit:Provided that where an existing industrial unit transferred for being run by State Government/RIICO/RFC on lease by a new management, fulfils the above conditions except the condition of additional fixed capital investment, and the new management undertakes to discharge all its outstanding statutory liabilities towards any Department of the State Government as specified by such Department and undertakes to clear all its outstanding dues payable to the financial institutions, as fixed by such institutions, shall also be deemed to be a new industrial unit.(l)"Pioneering Unit" means the first ten new industrial units of each type of industry established in any Panchayat Samity of the State during the operative period of this Scheme, having fixed investment exceeding Rs. 3.00 crores each and with a minimum regular employment of 50 persons each.(m)"Premier Unit" means a new industrial unit established during the operative period of this Scheme, having fixed capital investment exceeding Rs. 150.00 crores and with a minimum regular employment of 500 persons.(n)(i)"Prestigious Unit" means new industrial unit established during the operative period of this Scheme having fixed capital investment exceeding Rs. 15.00 crores and with a minimum regular employment of 100 persons.(ii)"Very Prestigious Unit" means a new industrial unit established during the operative period of this Scheme, having a fixed capital investment of Rs. 50 00 crores or more and with a minimum regular employment of 250 persons.(o)"Screening Committee" means the State Level Screening Committee (SLSC) or a District Level Screening Committee (DLSC), which shall exercise its powers and discharge its duties in accordance with the provisions of this Scheme.(p)"Separately Identifiable Capital Investment" means the fixed capital investment in a separate new building, with separate electric metering including sub-metering and water connection, separate new plant and machinery without any production linkage with the manufacturing process of the existing unit, with separate accounting and installed as per the approved independent project duly appraised by a Financial Institution.(q)"Sick Industrial Unit" means-(i)an industrial unit which has incurred cash losses in the two complete and consecutive financial years immediately preceding the commencement of this Scheme or during the operative period thereof and is likely to continue to incur cash losses in the next financial year and has an erosion on account of cumulative cash losses to the extent of 50% or more of its net worth, and being potentially viable is taken up by a Central or State level financial institution or a bank, under a programme of rehabilitation.OR(ii)an industrial unit which is declared sick during the operative period of this Scheme, by the Board for Industrial and Financial Reconstruction (BIFR) under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985, and by the State Level Committee or the appropriate District Level Committee, in the Industries Department, in case of non-BIFR cases;OR(iii)an industrial unit which is taken over and sold during the operative period of this Scheme to a new management by the State Government or RIICO or RFC.(r)"Small Scale Unit" (SSI) means an industrial unit of which the investment in plant and machinery does not exceed the investment specified by the Government of India from time to time.
