In exercise of the powers conferred by sub-section (3) of section 8 read with sub-section (4) of section 18 of the Rajasthan Value Added Tax Act, 2003 (Rajasthan Act No. 4 of 2003), the State Government being of the opinion that it is expedient in the public interest so to do, hereby exempts from tax the sale of High and Light Speed Diesel Oil and Petrol, to the extent to which the rate of tax in respect thereof exceeds 5.5% to the Oil companies that is M/s. Indian Oil Corporation Ltd., M/s Bharat Petroleum Corporation Ltd., M/s Hindustan Petroleum Corporation Ltd., M/s Numaligarh Refinary Ltd. and M/s Nayara Energy Ltd.on the following conditions; namely:-

(1) that the sale should take place among themselves within the State;

(2) that the purchasing oil company shall be allowed to claim input tax credit in respect of such purchases, to the extent of 5.5% the net retail sale price or purchase price, whichever is less; and

(3) that the purchasing oil company shall pay tax at the notified rate when such goods are sold by them to any other dealer or person.

Explanation: Net retail sale price means price on which oil company sale High and Light Speed Diesel Oil and petrol to any person other than above mentioned oil companies.