5. Exemption from Tax

(1) The Government may, subject to such restrictions and conditions as may be prescribed, including conditions as to licence and licence fees, by order exempt in whole or in part from payment of tax any class of dealer or any goods or class or description of goods.

(2) Notwithstanding anything contained in sub-section (1) of section 4 of this Act, the Government may, subject to such conditions as it may consider necessary by notification in the Government Gazette, direct that a class or classes of dealers manufacturing goods in the State shall be entitled to rebate in the tax payable on the sale of such manufactured goods equal to the amount of tax paid by them on the raw-material actually used in manufacture of such goods.