(1) Subject to the restrictions specified in sub-clause (b) of sub-section (1) of section 118, and subject to such conditions and restrictions as prescribed in these rules, no tax shall be payable by a dealer for the balance unexpired period in respect of his sales of goods manufactured by him in his newly set up small-scale industrial unit situated in West Bengal, and in calculating his turnover of sales upon which tax shall be payable, that part of his turnover of sales which represents the turnover of sales of such goods shall be deducted from his turnover of all sales, under clause (d) of sub-section (1) of section 16 and sub-rule (3) of rule 27 of these rules.

(2) The balance unexpired period in respect of which the dealer is eligible for exemption of tax under sub-rule (1) (hereinafter referred to as the "available eligible period") shall commence from the appointed day and shall expire on the completion of such period.

Provided that payment of tax shall not be exempt after the amount of output tax or the aggregate of the amounts of such tax payable from the appointed day, exceeds any of the limits prescribed under sub-rule (3) at any time before the completion of the available eligible period.

(3) The amount of output tax or the aggregate of the amounts of such tax payable that the dealer is eligible for exemption under clause (b) of sub-section (1) of section 118 for the whole of the available eligible period shall be such balance un-expired amount (hereinafter referred to as the "balance available amount") of the specified percentage of the gross value of fixed capital assets which he would have continued to enjoy under section 39 of the West Bengal Sales tax Act, 1994 (hereinafter referred to as the "previous Act") on sales of goods manufactured in such newly set up small-scale industrial unit, on the appointed day had this Act not come into force:

Provided that where a newly set to small-scale industrial unit in West Bengal is relocated, either in full or in part, to a place with a higher eligibility period, such unit shall not be entitled to such higher eligibility period for such relocation:

Provided further that where such unit is relocated, either in full or in part, to a place with a shorter eligibility period, the total eligibility period shall be re-calculated on the basis of the period of eligibility available at the new location but under no circumstances such re-calculated period shall be less than the period already enjoyed by the dealer at its old location.

(4) A registered dealer availing of the benefit of exemption of tax under this rule shall, notwithstanding such exemption, furnish returns as required by section 32 and the rules made thereunder.

(5) Notwithstanding the provisions contained in sub-rule (1), a dealer who has been enjoying the benefit of exemption from payment of output tax under the clause (b) of sub-section (1) of section 118 in respect of sale of goods manufactured by him in his newly set up small-scale industrial unit, shall cease to be eligible for the benefit of exemption under sub-rule (1) in respect of sales of goods so manufactured by him, on franchise or otherwise, using the trade mark or brand-name or logo of any product of any other industrial unit, or commercial organisation, situated within or outside West Bengal.

(6) For the contravention of any provisions of these rules, the benefit of exemption of tax under clause (b) of sub-section (1) of section 118 shall, subject to such conditions and restrictions as prescribed elsewhere in these rules, be discontinued even before the expiry of the available eligible period referred to in sub-rule (2).

(7) For the purposes of the clause (b) of sub-section (1) of section 118, the expression "gross value of fixed capital assets", in relation to a newly set up small-scale industrial unit, shall mean the aggregate of actual price or premium paid by the dealer for the land, whether freehold or leasehold, expenditure incurred by the dealer for construction of the factory shed, the cost of plant and machinery including those obtained on hire, lease, rent or loan and cost of pollution control equipment on or before the date on which the tax becomes payable by him under the Act.

(8) The aggregate of the benefit of exemption enjoyed by the dealer under this rule shall, notwithstanding that the sale is exempted from tax, be determined, on the basis of the appropriate rate specified in sub-section (2) of section 16 at which the sale would have been otherwise subjected to tax, if the dealer had not been enjoying the benefit of exemption under these rules.