Exemption from payment of tax

(1) No tax, under sub-section (2) of section 20, shall be payable by a dealer on the importation of goods, if such goods are used as raw material for the manufacture of other goods for sale in the State or in the course of inter-State trade or commerce or in the course of export out of the territory of India, or are used in the execution of works contract in the State. (2) The State Government may, by notification, subject to such conditions and restrictions as may be specified, exempt any class of dealers or any class of goods from the payment of whole or part of the tax payable under sub-section (2) of section (20), on the basis of: (a) quantum of investment, or (b) location of the industry in the specified area. (3) Any dealer who is eligible for exemption under clause (b) of sub-section (2) shall be entitled to the benefit from the date of commencement of commercial production of the industrial unit. (4) The State Government may, from time to time, specify the goods or the class of dealers who shall be entitled to the exemption from payment of tax. (5) Where any dealer produces goods by using the imported goods as raw materials, it must be proved to the satisfaction of the prescribed authority that the goods imported have been used as raw material for the manufacture of taxable goods. If the dealer fails to prove that the goods so imported have been used as raw material, the tax paid by him under sub-section (2) of section 20 shall be adjusted against the tax liability of the dealer. (6) Notwithstanding anything contained in this Act, the exemption granted under sub-section (1) shall not be available to a dealer, unless he furnishes the certificate of usage or consumption or sale as prescribed. (7) If any dealer fails to comply with the instructions issued under this Act regarding the use of such imported goods, the prescribed authority may cancel the exemption certificate granted to such dealer. (8) The State Government or any officer authorized by it may, after conducting an inquiry, recover the tax due together with interest at the rate of 12% per annum, if it is found that the goods so imported have been diverted for any other use or consumption other than what was specified in the exemption certificate. (1) Within ninety days from passing by the Tribunal of any order under section 20, the assessee in respect of whom the order has been passed, or the Commissioner, may, by application in writing, together with a fee of one thousand rupees where such application is made by the assessee, require the tribunal to refer to the High Court; any question of law arising out of such order. (2) If, for reasons to be recorded in writing, the Tribunal refuses to make such reference, the applicant may, within forty five days of such order, either- (a) withdraw his application and if the applicant who does so, is an assessee, the fee paid by him shall be refunded; or (b) apply to the High Court against such refusal. (3) Upon the receipt of an application under clause (b) of sub-section (2), the High Court is not satisfied that such refusal was justified, it may require the Tribunal to state a case and refer it to the High Court and on receipt of such requisition the Tribunal shall state and refer the case accordingly. (4) If the High court is not satisfied that the statements in a case referred under this section are sufficient to enable it to determine the question raised thereby, it may refer the case back to the Tribunal to make such additions thereto or alterations therein as the Court may direct in that behalf. (5) The High court upon hearing any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded and shall send to the Tribunal a copy of such judgment under the seal of the Court and the signature of the Registrar, and the Tribunal shall, where necessary amend its order in conformity with such judgment. (6) Where a reference is made to High Court under this section, the costs including the disposal of the fee referred to in sub-section (1), shall be, in the discretion of the Court. (7) The payment of the amount of tax including penalty, if any, due in accordance with the order of the Tribunal in respect of which an application has been made under this section shall not be stayed pending the disposal of such application or any reference made in consequence thereof. (8) The tribunal or the High Court may admit an application under this section after the expiry of the period of limitation provided in this section, if it is satisfied that the applicant has sufficient cause for not presenting the application within the period.