Moratorium for Payment of Tax

(1) Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary so to do for increasing production of any goods or for promoting the development of any industry in the State generally or in any district or part of a district in particular, it may on application or otherwise in any particular case or generally, by notification declare that to the dealers running new units whose date of starting production falls on a date prior to the date of commencement of this Act and dealers owning manufacturing units which have undertaken expansion, diversification or modernization or backward integration prior to the date of commencement of this Act and if such dealers hold an eligibility certificate issued under the provisions of section 4-A of the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002, rules made or notifications issued thereunder, moratorium for payment of admitted tax in lieu of exemption from tax on sale of goods whether wholly or partly or at recuperate will be allowed subject to the conditions given in this Section and such other conditions as may be prescribed or as the State Government may, by notification in the Gazette, specify. (2) Dealers who have been granted facility of moratorium for payment of admitted tax before the commencement of this Act, such facility shall continue and shall be deemed to have been granted under this Act, and to that extent the provisions of Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 shall be deemed to be part of this Act. The facility granted under this Section shall be subject to such conditions as given in this Section and such other conditions as may be prescribed or as the State Government may, by notification in the Gazette, specify. (3) Any application pending at the time of commencement of this Act, before the Commissioner of Trade Tax, for issue of orders for moratorium for payment of admitted tax under the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 shall be deemed to be pending under the provisions of this Act before the Commissioner and the same shall be disposed of according to the provisions of that Act as it was in force on the date on which the application was presented before the Commissioner. (4) Notwithstanding any thing contained contrary to the provisions of this Act and in particular to the provisions of section 4-A or sub-section (2-A) of section 8 of the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002, rules made or notifications issued thereunder-- (a) application for grant of eligibility certificate presented on a date prior to the date of commencement of this Act before the competent authority under that Act shall be deemed pending before the prescribed authority under this Act, (b) dealers owning new units whose date of starting production falls before the date of commencement of this Act and dealers owning such units as have under taken expansion or diversification or modernization or backward integration before the date of commencement of this Act, may apply for grant of eligibility certificate under the provisions of section 4-A of the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 within the time prescribed under that Act before the prescribed authority under this Act. (5) Applications for grant of eligibility certificate under sub-section (4) shall be disposed of by the prescribed authority according to the provisions of the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002, the rules made and notifications issued thereunder, as applicable on the date of commencement of this Act, and the dealer, if found eligible, shall be granted eligibility certificate, and such dealer shall be entitled to moratorium for payment of admitted tax to the extent and for the period provided in sub-section( 6). (6) Subject to other provisions of this Section, the dealers holding eligibility certificate either granted under the provisions of the Uttarakhand (the Uttar Pradesh Trade Tax Act, 1948) Adaptation and Modification Order, 2002 before the date of the commencement of this Act or who may be granted eligibility certificate under sub-section (5), shall be eligible to tax concessions or, as the case may be, for the facility of moratorium for payment of tax in lieu of exemption from tax, as per provisions of section 4-A of the repealed Act and the Rules made or relevant Notifications issued thereunder, subject to the following conditions and restrictions, namely:-- (a) The dealers who had opted for moratorium for payment of tax in lieu of exemption from tax, shall be eligible for the facility of moratorium to the extent of aggregate amount of hundred percent of the amount of exemption from tax mentioned in the eligibility certificate and fifty percent of the amount of fixed capital investment mentioned in the eligibility certificate less aggregate of such amount in respect of which facility of moratorium for payment of tax has been availed during the period before the commencement of this Ordinance, for the period remaining on that date out of the maximum period