Composition ofTax: After sub-section (3) of section 53 ofthe Principal Act, the following new sub-sections shall be added, namely,- “(4) Notwithstanding anything contained in- this Act, the Government, may by notification published in the official Gazette provide for a scheme of composition subject to such conditions and restrictions as may be provided therein, permit any dealer liable to pay tax on sales effected by way of transfer of property in goods (whether in goods or in some. other form) involved in the eXecution of works contract, to pay, at his option, .in , lieu ofthe amount of tax payable by him under this Act, at the rate specified in the said ‘ notification but not exceeding five (5) per eentum of the total contact value of the works contract.
(5) A dealer111 whose case composition under this section is in force, shall not,-
(i) be entitled to any claim ofinputtax credit1n respect ofpmhase ofany goods by him in the state; and
(ii) issue tax invoice to any dealer who has purchased of goods from him.
(6) The option so exercised under this section shall be final for the year and shall continue for subsequent years until the dealer becomes ineligible, or withdraws his option in writing.” [4]