FORM 21

[See rule 114 (4) and rule 127]

Deed of agreement for admission of loan liability created under sub-section (10) of section 40 of the West Bengal Sales Tax, Act 1994

THIS AGREEMENT made this ................. day of ............... BETWEEN ................ (name) .................. son/daughter of ............. of ................................. (address) *Proprietor/Partner/Karta/ Principal Officer/Director, on behalf of the dealer holding certificate of registration No. .................. under the West Bengal Sales Tax Act, 1994, (hereinafter referred to as the "Borrower" which term shall, where the context so admits, include *his/her heirs, executors, administrators, representatives and assignees), of the One Part and the Governor of the State of West Bengal (hereinafter referred to as the "Lender" which term shall include his successors in office and assigns) of the Other Part.

WHEREAS the Borrower has availed of deferment of payment of tax payable in respect of the year ended on the ................./part of the year from the ............ to ................ amounting to Rs. .............. (in figures) (Rupees .....................) (in words), under sub-section (1) of section 40 of the West Bengal Sales Tax Act, 1994 (hereinafter referred to as the said Act) :

AND WHEREAS the Borrower has communicated his/her intention to the specified authority, referred to in rule 114 of the West Bengal Sales Tax Rules, 1995, for creation by such authority of a loan liability for him/her against the deferment of the said amount of tax if it were a loan sanctioned to him/her :

AND WHEREAS the said specified authority agrees to create such loan liability for the said Borrower amounting to Rs. ....................................... (in figures) (Rupees ..................) (in words), against deferment of the payment of the tax as sought by the Borrower, subject to the conditions hereinafter appearing.

NOW IT IS HEREBY RECORDED AND AGREED BY AND BETWEEN THE PARTIES as follows :-

1. That in pursuance of this Agreement, the specified authority created by an order dated .............. a loan liability for the Borrower to the extent of Rs. ..................... being the amount equal to the amount of tax deferred under section 40 in respect of the return period or periods ending on the ........................ in consideration of the payment of the said amount of tax deemed to have been made on or before the last day of the year.

2. That in pursuance of this Agreement the said Borrower admits *his/her loan liability amounting to Rs. .................. (in figures) (Rupees ...................) (in words) created by the said specified authority for a period of ......................... years (hereinafter referred to as loan period) commencing from the prescribed date on which the tax is payable by him/her for each of the return periods against the tax payable by the dealer and deferred under sub-section (1) of section 40 in respect of the year or part of such year ended on the ......................... comprising return period or periods ending on the ................

3. That in the event of discontinuance or closure of his/her business, cessation of his/her liability to pay tax or cancellation of his/her certificate of registration under the Act before the expiry of the said loan period, the Borrower shall pay the entire amount of the loan created by the specified authority at a time within fifteen days from the date of such discontinuance or closure of his/her business, cessation of liability to pay tax or cancellation of his/her certificated of registration.

4. That the borrower shall furnish to the specified authority all the accounts and documents required or called for by it and keep his premises, buildings, machinery, stock of raw materials and finished goods open to inspection by the specified authority or by a person appointed under sub-section (1) of section 3 and authorised by the specified authority for his purpose.

5. That the specified authority shall have the full right, power and authority at all times to do all the acts which may be necessary or expedient for the purpose of enforcing compliance with any terms, conditions and reservation contained herein and to recover from the Borrower the amount of loan created under this agreement and all costs incurred in connection herewith in any way relating hereto.

6. That there shall be a charge on the said Borrower's assets movable or immovable, to the extent of the amount of the loan liability during the said loan period and the said Borrower shall not dispose of his/her assets, other than the goods manufactured, without prior permission of the said lender in writing.

7. That after any inspection as herein before provided for or, on account of failure of the Borrower to comply with, or to fulfill, any of the conditions of this covenant, the specified authority may, even before the expiry of the said loan period direct the Borrower, after giving him/her reasonable opportunity of being heard, to pay the entire amount of the loan within such date as may be specified in the notice in this regard.
 

8. That in case the Borrower fails to make the full payment of the amount of loan by the date referred to in clause 3 and 7 hereof, the Borrower shall be liable to pay interest, in addition to the amount of loan, at the rate of 2 per centum of the amount of loan remaining unpaid on the month immediately preceding the month in which the date referred to in clause 3 or 7 falls for each month of default or part thereof calculated from the month immediately following the date referred to in clause 3 or 7 hereof.

9. That on payment of the entire amount of loan, and if interest is payable as referred to in clause 8, then, on payment of the entire amount of loan and interest, the Borrower shall be discharged from his/her liability created under this agreement.

10. That on the expiry of the said loan period as referred to in clause I hereof, the said Borrower shall be discharged from his/her loan liability secured by this agreement in consideration of the payment of such amount by the date prescribed under the West Bengal Sales Tax Rules, 1995, as if it were a tax payable in accordance with the provision of sub-section (7) of section 40.

IN WITNESS WHEREOF the parties to these presents have hereunto set and subscribe their respective hands the day, month and year first above written.

Signed by the said ................................ on behalf of .................... (dealer)

Signed for and on behalf of the Governor of the State of West Bengal by the specified authority.