57. Deferment

(1) Such industrial units as are availing the benefit of exemption from payment of tax on the sale of their finished products granted under clause (b) of sub-section (3) of section 7 of the earlier law and who have not availed of their full entitlement shall be allowed to opt for deferment of their liability to pay tax in terms of section 96 of the Act. Such deferment shall be equivalent to his unavailed entitlement.

(2) No dealer eligible for deferment under sub-rule (1) shall be allowed to defer his tax liability under the Act unless he applies, to the concerned Circle Incharge, for the same in form A-XII

(3) Upon receipt of such application the concerned Circle Incharge shall issue the dealer a certificate in form C-VIII.

(4) (a) The amount of tax deferred under sub-rule (1) shall be paid in 5 equal installments payable by 31st March every year commencing after the expiry of the year during which the unavailed entitlement terminated.

(b) Where after expiry of the period of deferment the deferred tax is not paid within the time specified in clause (a), interest at the rate of one and half percentum per month or part thereof shall be payable on such amount of default till the date of its payment without prejudice to any action that maybe taken for recovery under the Act.

Explanation: For the purpose of this rule, the expression “unavailed entitlement” shall mean the remaining period or the remaining monetary ceiling, whichever may be applicable, of exemption to which such unit would have been entitled on the appointed date.