17B. Exemption from the operation of the provisions of section 17A

(1) Notwithstanding anything contained in section 17A, if the State Government is, at any time, of opinion that it would be in the public interest so to do, it may, by notification, exempt retrospectively or prospectively, the operation of section 17A in respect of sales of all or any of the goods specified in Schedule II or in respect of such class or classes of sales of the goods referred to in clause (a) of sub-section (2) of section 17A.

(2) Where the operation of section 17A is exempted under sub-section (1) -

(a) in respect of sales of all or any of the goods specified in Schedule II, the State Government shall, in accordance with the provisions of sub-section (1) of Section 25, transfer such goods to such other Schedule to this Act as it may deem fit, and, thereupon, the provisions of section 17 shall apply in respect of sale of the goods so transferred, or

(b) in respect of the class or classes of sales of the goods referred to in clause (a) of sub-section (2) of section 17A, such sales shall be subject to the provisions of section 17, and notwithstanding anything contained elsewhere in this Act, tax shall be levied on the taxable turnover of such sales at the rate specified in column (3) against the corresponding entry of the goods as aforesaid in column (2) of Schedule II for the purposes of sub-section (1) of section 17, and the concessions as provided in sub-section (2), or sub-section (3), of section 17 shall apply in respect of such goods,

(3) Where any amount of tax has been paid under section 17A by a dealer in respect of the sales of goods or class or classes of sales of goods referred to in the notification under sub-section (1) of section 17B in respect of the period commencing from the date of effect of the said notification to the date of publication of the said notification, the amount of tax so paid shall be adjusted with the amount of tax that may become payable by such dealer under section 17 in respect of the said period in such manner and within such time as may be prescribed :

PROVIDED that where consequent upon the coming into force of the notification under sub-section (1) of section 17B, the amount of tax payable by a dealer under section 17 in respect of the sales referred to in sub-section (1) of section 17B during the period commencing on the date of coming into force of the said notification and ending on the date immediately before the date of publication of the said notification is higher than the amount of tax which would have been payable under section 17A and such dealer proves to the satisfaction of the Commissioner that he has charged and collected separately the amount of tax payable on such sales in accordance with the provisions of section 17A, the balance amount of tax payable under section 17 shall, subject to such restrictions and conditions as may be prescribed, be remitted.