Applicability of the Act

(1) This Act shall be applicable to all industrial units existing on the date of commencement of this Act and also the industrial unit as may be set up after the commencement of this Act. Notwithstanding anything contained herein the industries set up prior to commencement of this Act and enjoyed benefits, concessions, incentives or some other package of subsidies etc. for a period of ten years under any Notification or Rules or Orders or Schemes etc. shall not be eligible for any benefits under this Act. (2) The Scheme will also be applicable to existing units in case of diversification, modernization and expansion. (3) Diversification, modernization and expansion should entail enhancement in the existing capacity by at least 25% and the package of incentive admissible to the unit shall relate to the expanded portion only. For the purpose of this calculation undepreciated value of the capital investment made on land, building, plant and machinery of the unit will be taken into consideration. In the Sikkim Industrial Promotion and Incentive Act, 2000, (hereinafter referred to as the said Act), section 2 shall be renumbered as sub-section (1) of that section and in sub-section (1) as so renumbered, for the word "five", the word "ten" shall be substituted and after sub-section (1) as so renumbered, the following sub-sections shall be inserted, namely:- "(2) The Scheme will also be applicable to existing units in case of diversification, modernization and expansion. (3) Diversification, modernization and expansion should entail enhancement in the existing capacity by at least 25% and the package of incentive admissible to the unit shall relate to the expanded portion only. For the purpose of this calculation undepreciated value of the capital investment made on land, building, plant and machinery of the unit will be taken into consideration." In the Sikkim Industrial Promotion and Incentive Act, 2000, in section 12A, for sub-section (1), the following sub-section shall be substituted namely:- "(1) The Tax payable by industrial unit under the Sikkim Value Added Tax Act, 2005 shall be deferred for a period of 3 (three) years for both regular and thrust area industries from the date of commencement of commercial production, subject to the following conditions namely:- (a) the industrial unit shall have to obtain concurrent notification to the effect under Section 30A of the Sikkim Value Added Tax Act, 2005 by furnishing such security, or additional security, deposit, as the prescribed authority may deem necessary; (b) total amount of tax deferred during first, second and third years shall be paid in four equal quarterly installments after expiry of the three years deferment period."