Section 6 in Daman and Diu Value Added Tax Regulation, 2005
6. Sale of certain goods exempt from levy of tax.
(1)The sale of goods specified in the First Schedule shall be exempt from tax:Provided that the Government may, by notification, specify the conditions and exceptions, if any, for the purposes of such exemptions.(2)Where a dealer sells capital goods used by him on and from the time of purchase exclusively for purposes other than making non-taxed sale of goods, and has not claimed a tax credit in respect of such capital goods under section 9, the sale of such capital goods shall be exempt from tax.(3)Where any dealer has purchased any goods on the basis of a declaration or certificate under any order or scheme referred to in sub-section (5) and -(a)any of the conditions subject to which such exemption was granted, or(b)any of the recitals or the conditions of the declaration, or certificate,are not complied with for any reason whatsoever, then, without prejudice to the other provisions of this Regulation, such dealer, shall, notwithstanding that such dealer or person was not liable to pay tax under any other provisions of this Regulation, be liable to pay tax on the sale price of the goods at the rates specified in section 4 and accordingly the dealer, who has become liable to pay tax under this sub-section shall, file a return in the prescribed form to the prescribed authority within a prescribed time, and include the sale price of such turnover in his return, and pay the tax in the prescribed manner.(4)The tax due from any dealer referred to in sub-section (3) shall be assessed and tax recovered as if the dealer is a dealer liable to be proceeded against under the provisions of this Regulation.(5)Subject to such conditions as the Government may, by notification, specify, all exports from the export, oriented unit, electronic hardware and technology park, software technology park unit and the special economic zone located within Daman and Diu, shall be exempted from the levy of tax.Explanation. - For the purposes of this sub-section, "export oriented unit", "electronic hardware and technology park", "software technology park unit" and the "special economic zone" shall mean the delineated area as may be notified by the Central Government to be such 'Unit' or 'Park' or 'Zone', as the case may be.(6)In a case where a dealer or a class of dealers had been granted exemption before the commencement of this Regulation from levy of tax under the Daman and Diu Sales Tax Act, 1964 (4 of 1964) repealed by section 106, the Government may, by general or special order, published in the Official Gazette, provide for a deferral scheme (including a scheme providing the manner in which such exemption from tax shall be continued) or grant exemption from levy of tax to such dealer or class of dealers and such deferral scheme or exemption shall be for the remaining period for which the dealer or class of dealers had been exempted under the Act so repealed.
