Notwithstanding, anything contained in rule 96, the levy of tax @ 5% on industrial inputs, raw-materials and packing materials shall be subject to the following restrictions and conditions, namely;

(i) the goods which are Industrial Inputs, raw materials or packing materials to be purchased under clause (b) of sub-section (3) of section 8 of the Central Sales Tax Act, 1956;

(ii) such sales of Industrial Inputs, raw materials or packing materials are made by registered dealer to other registered and eligible industrial unit;

(iii) the goods sold are duly specified in the Entitlement Certificate in Form- XLIII issued by the Assessing Authority of the district concerned;

(iv) the goods sold are used by purchasing industrial unit as raw material to manufacture goods for sale in the State of Himachal Pradesh or sale in the course of inter-state trade or commerce or sent outside the State otherwise than by way of sale in the course of inter-state trade or commerce or export out of the territory of India; and.

(v) the concessional rate shall be applicable to all eligible industrial units from the date of issue of notification regarding Himachal Pradesh Value Added Tax (Seventh) Amendment Rules, 2012 subject to issue of Entitlement Certificate in Form-XLIII by the Assessing Authority of the district concerned (district incharge).

Provided that no certificate in Form-XLIII shall be issued by the Assessing Authority of the district (district incharage) unless the application for the grant of the same is accompanied by the certificate in Form-XLIV obtained by such entrepreneur from the concerned General Manager, District Industries Center of the Department of Industries of Government of Himachal Pradesh where the Industrial unit is registered or in other cases from Director of Industries, Himachal Pradesh or his nominee duly authorised by him in this behalf:

Provided further that the application for the grant of Entitlement Certificate shall not be entertained by the Assessing Authority of the district (district incharge) unless it is accompanied by a deposit receipt of Rs. 500/- in the Government Treasury or payment made online through the website of the Excise and Taxation Department under head of account 0040-tax on sales, trade etc.-800- other receipts-03-other receipts.

(vi) The tax shall be levied at full rates notified under sub-section (1) of section 6 of the Himachal Pradesh Value Added Tax Act, 2005 (hereinafter referred to as the 'Act' if any of the certificates in Form-XLIII and Form-XLIV, as the case may be, is found to be false, incomplete or defective or is not furnished with return under the Act.