65. Purchase of iron scrap by mini steel plant exempt from purchase tax

A registered dealer liable to pay tax on his purchases under clause (a) of sub-section (1) of section 13 may, for the purpose of determining his taxable specified purchase price, deduct from his specified purchase price under clause (e) of sub-section (3) of section 20 that part of his specified purchase price which represents his purchases of iron scrap, cast iron scrap, including steel skull turnings and borings for use by him directly in the manufacture of mild steel or special steel ingots or billets in his mini steel plant.

Explanation.- For the purposes of this rule, the expression "mini steel plant" means an industrial unit which having a licence issued by the Central Government in terms of its policy during the liberalised licensing policy period for the manufacture of mild steel ingots or special steel ingots or billets in electric furnaces by either the conventional or continues casting process based on ferrous scrap as the principal raw material for production purposes.