Special Relief to Certain Manufacturers

Special relief to certain manufacturers (1) Notwithstanding anything contained in sections 3,3A, 3AAAA and 3D
(a) where any goods liable to tax under sub-section (1) of section 3D are purchased by a dealer who is liable to tax on the turnover of first purchases under that sub-section, or where any goods are purchased by any dealer in circumstances in which such a dealer is liable to trade tax on purchase of such goods under section 3AAAA and the dealer holds a recognition certificate issued under sub-section (2) in respect thereof, he shall be liable in respect of those goods to tax at such concessional rate, or be wholly or partly exempt from tax, whether unconditionally or subject to the conditions and restrictions specified in that behalf, as maybe notified in the Gazette by the State Government in that behalf:
(a1) Where any declared goods liable to tax under sub-section (1) of section 3D are sold or supplie d by a dealer, who is the first purchaser thereof, to another dealer, holding a valid recognition certificate under sub-section (2) in respect thereof, the State Government may, subject to such conditions and restrictions as may be specified by a notification in that behalf, grant the same relief as mentioned in clause (a) to such first purchaser:
PROVIDED that any notification under this clause or clause (a) in respect of paddy may be made effective from a date not earlier than the first day of May, 1977:
PROVIDED FURTHER that the rules to carry out the objects of this clause or clause (a) may also be made effective from a date not earlier than the first day of May 1977;
(b) Where any goods liable to tax under any other provision of this Act are sold by a dealer to another dealer and such other dealer furnishes to the selling dealer in prescribed form and manner a certificate to the effect that he holds a recognition certificate issued under sub-section (2) in respect thereof, the selling dealer shall be liable in respect of those goods to tax at such concessional rate or be wholly or partly exempt from tax, whether unconditionally or subject to the conditions and restrictions specified in that behalf as may be notified in the Gazette by the State Government in that behalf.
Explanation: For the purposes of this sub-section the conditions and restrictions that may be specified for the grant of concession in respect of, or exemption from tax, may include the requirement that the notified goods referred to in sub-clause (2) shall be manufactured in a new unit as defined in section 4A, which goes into production after such date, whether before or after the date of the notification under this sub-section, and within such period as maybe specified.
(2) Where a dealer requires any goods, referred to in sub-section (1) for use in the manufacture by him, in the State of any notified goods, or in the packing of such notified goods manufactured or processed by him, and such notified goods are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the course of export out of India, he may apply to the assessing authority in such form and manner and within such period as may be prescribed, for the grant of a recognition certificate in respect thereof, and if the applicant satisfies such requirements including requirement of depositing late fee and conditions as maybe prescribed, the assessing authority shall grant to him in respect of such goods a recognition certificate in such form and subject to such conditions, as may be prescribed.
Explanation: For the purposes of this sub-section
(a) goods required for use in the manufacture shall mean raw materials, processing materials, machinery, plant, equipment, consumable stores, spare parts, accessories, components, sub-assemblies, fuels or lubricants; and (b) notified goods means such goods as may, from time to time, be notified by the State Government in that behalf.
[(2-A) Where any recognition certificate issued under this section in respect of any notified goods is in force on the commencement of the Uttar Pradesh Trade Tax (Second Amendment) Act, 2000 and the notification by which such goods has been recognition made effective from a date prior to the date of such notification, the recognition certificate in respect of such goods shall be deemed to be valid with effect from the date such notification has been made effective.]
(3) [Omitted]
(4) (i) Where the assessing authority is satisfied that the dealer in whose favour the recognition certificate in respect of any goods was granted under sub-section (2)
(a) has discontinued the manufacturing business for the purpose whereof the recognition certificate was granted; or (b) has made a breach of any condition of the recognition certificate; or (bb) has failed to pay any tax, penalty or other dues payable under this Act within a period of three months from the date such tax, penalty or other dues became payable; or (c) has failed to furnish the security required under section 8C; or (d) is a firm, association or a joint Hindu family which, within the meaning of the Explanation to sub-section (1) of section 18, is deemed to have discontinued its business, such authority may, either of its own motion or on the application of the dealer, cancel the recognition certificate with effect from such date as it may specify.
(ii) The assessing authority may amend a recognition certificate granted under sub-section (2) either of its own motion or on the application of the dealer, where the dealer has changed the name or place of his business or has closed down any branch or has opened a branch or for any other sufficient reason:
PROVIDED that no registration certificate shall be cancelled or amended by assessing authority of its own motion except after reasonable opportunity of being heard has been given to the dealer.
Ic9560(iii) The [Joint Commissioner] may, on the application of the dealer, and after satisfying himself that the goods referred to in sub-section (1) were actually used in the manufacture of the notified goods, or in the packing of such notified goods manufactured or proceesed by him in the State, amend, restrospectively but not from a date earlier than March 5, 3001 any recognition certificate granted under sub-section (2).]
(5) Where a dealer in whose favour a recognition certificate has been granted under sub-section (2) has purchased the goods after payment of tax at concessional rate under this section or, as the case may be, without payment of tax and has used such goods for a purpose other than that for which the recognition certificate was granted or has otherwise disposed of the said goods, such dealer shall be liable to pay as penalty such amount as the assessing authority may fix which shall not be less than the difference between the amount of tax on the sale or purchase of such goods payable under this section and the amount of tax payable under any other provisions of this Act but not exceeding three times the amounts of such difference.
(6) Where a dealer in whose favour a recognition certificate has been granted under sub-section (2) has purchased any goods after payment of tax at concessional rate under this section, or as the case may be, without payment of tax and the goods manufactured out of such raw materials or processing materials or manufactured goods after being packed with such packing material are sold or disposed of otherwise than by way of 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, such dealer shall be liable to pay an amount equal to the difference between the amount of tax on the sale or purchase of such goods payable under this section and the amount of tax calculated the rate of four percent, on the sale or purchase of such goods.
(7) For determining whether a sale or purchase is in the course of inter-State trade or commerce, within the State, or in the course of export out of India, the provisions of sections 3,4 and 5 of the Central Sales Tax Act, 1956, shall respectively apply.
(8) No penalty under this section shall be imposed unless the dealer has been given a reasonable opportunity of being heard.
(9) No prosecution under section 14, shall be instituted, and no penalty under section ISA shall be imposed in respect of the same facts on which a penalty has been imposed under this section.