THE HIMACHAL PRADESH VALUE ADDED TAX (AMENDMENT AND VALIDATION) ACT, 2007
Act No.12 of 2007
(As ASSENTED TO BY THE GOVERNOR ON 11th MAY, 2007)
AN
ACT
Further to amend the Himachal Pradesh Value Added Tax Act, 2005 (Act No.12 of 2005).
Be it enacted by the Legislative Assembly of Himachal Pradesh in the Fifty-eighth Year of the Republic of India as follows:-
1. Short title.
This Act may be called the Himachal Pradesh Value Added Tax (Amendment and Validation) Act, 2007.
2. Amendment of section 11.
1. In section 11 of the Himachal Pradesh Value Added Tax Act, 2005 (hereinafter referred to as the "principal Act"),-
(a). In sub-section (1), the following shall be substituted, namely:-
"(1) Subject to the provisions of this Act, the input tax credit which a purchasing registered dealer hereinafter in this section called 'the purchasing dealer') may claim, in respect of taxable sales made by him during the tax period, shall be-
(a) the amount of input tax paid or payable by such purchasing dealer to the selling registered dealer, on the turnover of purchases of such goods as have been sold by him during the tax period;and
(b) calculated and allowed as provided in this section, and subject to such other conditions as may be prescribed.";
(b) in sub-section (3), for the words and the signs "The input tax credit shall be allowed to the extent of the amount of input tax paid by the purchasing dealer on the purchases of taxable goods made by him in the State, from a registered dealer holding a valid certificate of registration, which are intended for the purpose of,-", the words and signs "Except the goods in respect of which input tax credit is not admissible under this Act or the Rules made thereunder, the input tax credit shall be allowed to the purchasing dealer in respect of the turnover of purchases of such taxable goods as have been sold by him during the tax period, and to the extend of an amount of input tax paid by such purchasing dealer on the turnover of purchases of such taxable goods made by him in the State, from a registered dealer holding a valid certificate of registration, for the purposes of,-" shall be substituted;
(c) in sub-section (7), in clause (k), in sub-clause (iii), for the sign ",", the sign and the word "and" shall be substituted and thereafter the following new clause shall be inserted, namely:-
(I) the turnover of purchase of such goods which have not been sold during the tax period.";
(d) in sub-section (9), the words "are intended" shall be omitted; and
(e) in sub-section (13), in the Explanation, in part (i), for the words "for which the purchasing dealer is entitled to", the words "which the purchasing dealer may be allowed under this section in respect of taxable sales made by him during the tax period" shall be substituted.
3. Amendment of section 62
In section 62 of the principal Act, after sub-section (6), the following new sub-section shall be inserted, namely:-
"(7) Notwithstanding anything to the contrary contained in sub-section (5), the State Government may, issue a notification or make a Scheme, to provide for facility of making deferred payment of tax, with retrospective effect so as to be effective from any day on or after 1st day of April, 2005.".
4. Validation
(1) The provisions of sub-section (5) of section 62 of the principal Act, as amended by the Himachal Pradesh Value Added Tax (Amendment and Validation) Act, 2007 (hereinafter in this section referred to as the 'said Act'), shall be deemed to be and to have always been valid and effective from the 1st day of April, 2005 irrespective of the fact that it has been enacted subsequently, and accordingly-
(a) the new and existing industrial units specified in para 5-A of the Himachal Pradesh General Sales Tax (Deferred Payment of Tax) Scheme, 2005, (hereinafter in this section referred to as the "said Scheme") notified vide Notification No. EXN-F(1)-2/2004-(iii) dated 30th March, 2005 published in Rajpatra, Himachal Pradesh (Extra-ordinary) dated 31st March, 2005, and as amended from time to time, shall be deemed to be and shall be deemed always to have allowed the option (hereinafter in this section referred to as the 'said option')-
(i) either to continue to avail of the facility of making deferred payment of tax as provided for in the said Scheme; or
(ii) by making an application, in terms of Form S.T.(DP)-VII appended to the said Scheme, to pay the amount of deferred tax upfront at the net present value of 65% of the deferred tax liability; and
(b) the said option to pay the amount, of the deferred tax upfront at the net present value of 65% specified in any notification issued in pursuance of section 62 of the principal Act, as amended by the said Act, shall be deemed to be and shall be deemed always to have been restricted to the amount of the deferred tax liability only:
and notwithstanding any judgment or decree or order of any court. Tribunal or authority to the contrary, no notification or Scheme which has been issued in pursuance of section 62 of the principal Act, as amended by the said Act,-
(i) either to continue to avail of the facility of making deferred payment of tax as provided for in the said Scheme, or
(ii) by making an application in terms of Form S.T. (DP)-VII, appended to the said Scheme, to pay the amount of deferred tax upfront at the net present value of 65% of the deferred tax liability;
Shall be deemed to be invalid or ever to have been invalid on the ground merely that the authority issuing such notification or such Scheme did not have competence to made the same, and accordingly-
(i) no limit of other proceeding shall be maintained or continued in any court or before any Tribunal or authority for the refund of any tax, interest or penalty, and no enforcement shall be made by any court, Tribunal or authority of any decree or order directing the refund of the tax, interest or penalty which has been collected;
(ii) recoveries, if any, shall be made, in accordance with the provisions of the principal Act, as amended by the said Act, of all amounts which would have been collected thereunder, as if the said Act had been in force at all material times; and
(iii) anything done or any action taken (including any rules or order made, notification or Scheme issued or direction given or tax, interest or penalty imposed or recovered) under the principal Act before the commencement of the said Act, in so far as it is not inconsistent with the provisions of the said Act, shall be deemed always to have been validly done or taken in accordance with provisions of the principal Act as amended by the said Act.
(2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall be construed as preventing any person –
(i) from questioning, in accordance with the provisions of the said Act, the assessment, levy or collection of the tax as per the said option; or
(ii) from claiming refund of the tax, interest or penalty paid by him in excess of the amount due from him under the principal Act as amended by the said Act; and
(iii) no act or omission on the part of any person, before the commencement of the said Act, shall be punishable as an offence which would not have been so punishable as if the said Act had not come into force.