In exercise of the powers conferred by sub-section (3) of section 8 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), and in supersession of this Department' notification No.F12(28)FD/Tax/2007/139 dated 09.03.2007, the State Government being of the opinion that it is expedient in the public interest so to do, hereby exempts from payment of tax the registered dealers dealing in used motor vehicles, to the extent the rate of tax exceeds 4%, on the following conditions, namely:-

(1) that no input tax credit shall be claimed by the dealer in respect of purchase of such goods which are used in the used motor vehicle; and

(2) that such used motor vehicle was purchased initially, from the registered dealer of the State and is registered in the State under the provisions of Motor Vehicles Act, 1988 (Central Act 59 of 1988) prior to its sale.