Set off to power generation unit in sez (maharashtra)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2013
A Power generation unit, located in Maharashtra, under Special Economic Zone (SEZ),

Set off on purchases including Capital Assets is governed by restriction as in Rule 53(7B) as per Maharashtra Value Added Rule.

As per Govt. of Maharashtra Resolution No. SEZ 2001/(152) IND/ 2 Industries, Energy & labor Department Mantralaya, Mumbai 400032 dated 12 Oct, 2001, it was resolved at Sr. No. 6, that, all the sales by SEZ unit will be exempt from all State and Local taxes including Sales Tax, Purchase Tax, Royalty etc. If due to tax system constraint it is not advisable to grant direct exemption to the transaction, State Taxes paid would be fully reimbursed.

QUERRY
(1)Under which provisions this can be claimed exempt Under the Maharashtra VAT Act, 2002?
There appears no provision for claiming exemption of full taxes or reimbursement of full setoff of input taxes on purchases.
Is there any provision, notification to claim full setoff or reimbursement of taxes paid?
Kindly reply how it can be claimed?
(2) Coal used for generation of electricity whether it will be treated as fuel or raw material for Power Generation Unit?

Opinion in the matter will be highly appreciated.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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08 June 2013 Mr Author,
Open up the web site of Maharashtra Sales tax Department : www.mahavat.nic.in,you get th home page. Inthat click downloads,then forms,then form 224. In this form itsekf detailed instruction is given as how to fill in the form and show excess payment of tax.On verification of your returns and laims refund will be givenon aseperte claim made for refund...mjk