(1) A registered dealer who has an industrial unit situated in any Special Economic Zone having the same meaning as given in clause (b) of the Explanation to rule 54A and who is 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 purchases, of goods intended for use by him directly in the manufacture of goods in such unit, and of containers or other packing materials for the packing of goods in such unit, so purchased or manufactured, for sale of the goods manufactured by such dealer in the course of export out of the territory of India within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act, 1956 (74 of 1956).

(2) No purchase tax under clause (a) of sub-section (2) of section 20 shall be payable by a registered dealer, who has an Export Oriented Unit (EOU) as referred to in rule 54, situated anywhere outside the Falta Export Processing Zone in respect of his purchases, of goods intended for use by him directly in the manufacture of goods in such unit, and of containers or other materials for the packing of goods so purchased or manufactured.