(1)Where entry tax is payable by a dealer or by any person in respect of the entry of goods into a local area comprised within the limits of a Cantonment Board and a tax in the nature of a tax or octroi is levied by the Cantonment Board on the entry of goods into that local area for consumption, use or sale therein, such dealer or person shall be entitled to a set off of an amount equal to either the tax proved to have been actually paid by him to the Cantonment Board or the tax payable under this Act, whichever is less:

Provided that no set off shall be admissible under this section unless such dealer or person furnishes the certified documentary evidence of having paid a tax or octroi recovered by the Cantonment Board.

(2) where entry Tax has become payable on the value of goods specified in Schedule-II and such goods are used in manufacture, processing, conversion, job-work, assembling or packing and sent outside the State by way of interstate sale or in the course of export out of territory of India, the dealer shall be entitled to a set off of tax under this Act proportionate to the turnover of Value Added Tax sales made within State or inter-state sale or export out of territory of India.

Provided that no set off shall be available on goods mentioned at serial No. 1(a) of Schedule II when such goods are used in manufacturing, processing, conversion, job-work, assembling, packing or captive generation of power.