(1) Subject to such conditions and restrictions as may be prescribed, no tax shall be payable by a dealer for such period as may be prescribed in respect of his sales of goods manufactured by him in his newly set up small-scale industrial unit situated in the prescribed area, and in calculating his taxable turnover of sales under sub-section (3) of section 17, that part of his gross turnover of sales which represents the turnover of sales of such goods shall be deducted from his gross turnover of sales under sub-clause (viii) of clause (a) of sub-section (3) of that section.

(2) A registered dealer shall not be eligible for exemption from payment of tax under this section in respect of any sale of goods manufactured in his newly set up small scale industrial unit, if he once opts for deferment of payment of tax or remission of tax under section 40, section 41, section 42 or section 43, as the case may be, in respect of sale of such goods manufactured in such industrial unit.

(3) Notwithstanding the provisions contained in sub-section (1) or the rules made thereunder, a dealer who has been enjoying, or has been entitled to enjoy, the benefit of exemption from payment of tax under that sub-section 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 that sub-section in respect of all 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.

(4) Notwithstanding the provisions contained in sub-section (1), but subject to the provisions of sub-section (3), every dealer who has been enjoying, or has been entitled to enjoy, the benefit of exemption from payment of tax under sub-section (1), shall cease to enjoy such benefit of exemption on expiry of-

(a) five years from the date of his first sale of the goods manufactured in his newly set up small-scale industrial unit if such unit is situated within the area of the Kolkata Metropolitan Planning Area as described in the First Schedule to the West Bengal Town and Country (Planning and Development) Act, 1979; or

(b) seven years from the date of his first sale of the goods manufactured in his newly set up small-scale industrial unit if such unit is situated in any area other than the areas referred to in clause (a):

Provided that the dealer shall not be entitled to enjoy the benefit of exemption for the full period as referred to in clause (a), or clause (b), as the case may be, and he shall cease to enjoy such exemption from the day immediately following the day on which the aggregate of the benefit of exemption from payment of tax enjoyed by the dealer under this section, computed from the day of coming into force of this sub-section, exceeds two hundred per centum of the gross value of fixed assets.

Explanation- For the purposes of this sub-section,-

(a) the expression "gross value of fixed 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 such dealer for any return period.

(b) the aggregate of the benefit of exemption enjoyed by the dealer under this section shall, notwithstanding that the sale is exempt from tax, be determined in such manner, and within such time, as may be prescribed, on the basis of the appropriate rate specified in sub-section (1), or sub-section (2), of section 17 at which the sale would have been otherwise subjected to tax, if the dealer had not been enjoying the benefit of exemption under this section