Section 11   [ View Judgements ]

Effect of discontinuance of commercial production


1) A new industrial unit which discontinues commercial production for any reasons whatsoever at any time for a period exceeding six months within the period of duration of the tax deferment or discontinues the business at any time within such duration shall cease to enjoy the benefit of deferred payment of tax forthwith, and thereupon the authority competent to issue the eligibility certificate shall, in the like manner, cancel such certificate and send intimation thereof to the appropriate Sales Tax Officer.



(2) The entire amount of tax payment whereof was deferred till then, shall be paid by such unit into the Government treasury within a period of thirty days from the expiry of the aforesaid period of nine months of the date of discontinuance of business, as the case may be, and on failure to so to do the said amount shall be liable to be recovered forthwith from such unit in accordance with the provisions of the Act, interest at the rate of two per cent per month or part thereof shall be charged on such amount from the date on which the said period of thirty days expires without prejudice to any other action that may be taken for the recovery of the said amount under the Act.

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