53. Exemption from tax on certain sales to industrial units in Falta Export Processing Zone

Where a dealer makes a sale of any goods, other than those specified in Part B of Schedule IV, or containers or other materials, to a registered dealer for use directly by such registered dealer in the manufacture of any other goods in his industrial unit situated in the Falta Export Processing Zone or for the packing of goods purchased or goods to be manufactured by such registered dealer in such industrial unit, the dealer selling such goods or containers or other packing materials may deduct under sub-clause (xi) of clause (a) of sub-section (3) of section 17 from his gross turnover of sales that part of such gross turnover of sales which represents the sale to such registered dealer for the purpose as aforesaid in such industrial unit :

Provided that the goods so manufactured by such registered dealer in his industrial unit are for sale by him in the course of export within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act, 1956 (74 of 1956) :

Provided further that the claim for deduction shall not be allowed unless the dealer selling the goods furnishes, on demand, before the appropriate assessing authority a certificate in Form 10, duly filled in and signed by the registered dealer to whom such goods are sold, to the effect that the goods, containers and other packing materials purchased by him are covered by the letter of authority issued in his favour by the Development Commissioner of the Falta Export Processing Zone or any officer authorised by him.

Explanation.- The expression "the Falta Export Processing Zone" shall comprise places bearing the survey number and shall be enclosed by the boundaries specified in paragraph 4 of the Notification No. 262/customs/85, dated the 16th August, 1985, of the Ministry of Finance, Department of Revenue, Government of India, published in Part II, section 3, sub-section (1), of the Gazette of India, Extraordinary, dated the 16th August, 1985.