Whereas the draft of certain rules further to amend the Orissa Entry Tax Rules, 1999, was published as required by sub-section (1) of section 37 of the Orissa Entry Tax Act, 1999 (Orissa Act 11 of 1999), in the extraordinary issue No. 848 of the Orissa Gazette, dated the 22nd June, 2004 in the notification of the Government of Orissa in the Finance Department No. 27234-CTN-5/2003-F., dated the 22nd June, 2004 bearing S.R.O.No. 307/2004 inviting objections and suggestions from all persons likely to be affected thereby till the expiry of a period of fifteen days from the date of publication of the said notification in the Orissa Gazette;

And whereas no objection or suggestion has been received in respect of the said draft during the stipulated period;

Now, therefore, in exercise of the powers conferred by section 37 of the said Act, the State Government do hereby make the following rules further to amend the Orissa Entry Tax Rules, 1999, namely:-

1. (1) These rules may be called the Orissa Entry Tax (amendment) Rules, 2004.

(2) They shall come into force on the date of their publication in the Orissa Gazette.

2. In the Orissa Entry Tax Rules, 1999 (hereinafter referred to as the said rules), in rule 3,-

(i) sub-rule (1) shall be omitted;

(ii) for sub-rule (4) including the proviso thereto, the following sub-rule shall be substituted, namely:-

"(4) Goods specified in Part I and Part II of the Schedule to the Act shall be exigible to tax at a concessional rate of fifty percentum of the rate to which such goods are exigible under sub-rule (3) and sub-rule (2) respectively of this rule, when such goods are brought-

(a) for use as raw material by a manufacturer on first entry into a local area of the State from outside the State; or

(b) for use as raw material by a manufacturer on first entry into local area from another local area; or

(c) by a registered dealer into any local area and then sold to a manufacturer for use of raw material:

Provided that the tax payable under the Act is collected by a manufacturer in case of (b) and by such registered dealer in case of (c) and shown separately in the Cash memo or Credit memo or Bill issued to such manufacturer and a declaration in Form E 15 from the buying manufacturer is furnished :

Provided further that goods specified in Part I and Part II of the Schedule to the Act when used as raw material directly in manufacture of goods to be exported out of the territory of India shall not be exigible to tax where a declaration in Form 16 from the buying manufacturer is furnished :

Provided also that if the buying manufacturer contravenes the provisions of this sub-rule, he shall pay the difference in tax or the tax, as the case may be, had he not been entitled to concessional rate of tax or not to pay any tax under the said sub-rule.

Explanation.- For the purpose of this sub-rule the word "manufacturer" shall mean and shall always be deemed to have meant a manufacturer who is registered under the Act"; and

(iii) Explanation (c) to sub-rule (5) shall be omitted.

3. In the said rules, for sub-rule (1) of rule 10, the following sub-rule shall be substituted, namely :-

"(1) The statement under sub-section (1) of section 10 of the Act shall be in Form E 3 and shall be submitted to the assessing authority within twenty one days of the expiry of the month or quarter as the case may be, to which the statement relates. Such statement shall be accompanied by a receipt from the Government Treasury or a crossed demand draft or a banker's cheque or manager's cheque issued by a scheduled bank or cheque marked or certified by such bank as good for payment in favour of the assessing authority in the branch of any such bank of that place where the Government Treasury is situated, for the full amount of tax payable by him under the Act in respect of the said month or quarter, as the case may be.".

4. In the said rules, in sub-rule (2) of rule 11, for the words "crossed cheque", the words "banker's cheque or manager's cheque issued by a scheduled bank or a cheque marked or certified by such bank as good for payment" shall be substituted.

5. In the said rules, in sub-rule (3) of rule 17, for the words "sent outside the said local area", the words "sent outside Orissa" shall be substituted.

6. In the said rules, rule 18 including its marginal heading shall be omitted.

7. In the said rules, in the rule 19, -

(i) for sub-rule (2), the following sub-rule shall be substituted, namely :-

"(2) The tax so collected from the buying dealer shall be credited to the Government Treasury and the proof of payment thereof shall be submitted alongwith the statement or return, as the case may be, required to be filed under the Act."; and

(ii) for the proviso to sub-rule (5) and the illustration thereunder, the following Explanation shall be substituted, namely :-

"Explanation. - Where no entry tax is payable under sub-rule (2) of this rule on a part of the sales effected, the set off admissible under this sub-rule shall be reduced proportionately.".

8. In the said rules, in Form E 3,-

(i) after the words "Monthly" appearing in the opening portion of the heading, the words "or Quarterly" shall be inserted; and

(ii) after the word "Month" appearing in the opening portion in item No. 1, the words "or Quarter" shall be inserted.

9. In the said rules, in Form E 4,-

(i) in the first paragraph, for the words and dash "month of _________", the words, dash and oblique "month of __________ / quarter ending ___________" shall be substituted; and

(ii) in the first paragraph, in item (ii), for the words and dash "month of ______", the words, dash and oblique "month of ___________/ quarter ending ____________" shall be substituted.

10. In the said rules, after Form E 15, the following Form shall be added, namely :-

FORM E 16

[see rule 3(4)]

Declaration by the buying manufacturer

I/We ..............................................hereby declare that the goods purchased by me / us in Cash / Credit Memo / Bill No........................dated the .......................from........................bearing the Registration No...........................under the Orissa Sales Tax Act, 1947 and / or Registration No................................under the Orissa Entry Tax Act, 1999 shall be used as raw material for manufacture of the finished products to be exported out of the territory of India.