The rate of tax on the sale of goods subject to levy of tax shall be zero when such goods are sold -

(a) in course of inter-State trade or commerce ; or

(b) in course of export out of the territory of India; or

(c) to a dealer having business under -

(i) a SEZ; or

(ii) a STP; or

(iii) a EHTP; or

(d) to an EOU

Explanation- For the purpose of this section, the sale of goods to a dealer referred to in clause (c) or an EOU referred to in clause (d) shall mean and always be deemed to have meant the sale of such goods intended to be used as capital goods referred to in clause (8) of section 2 or used for manufacturing of goods by such dealer or EOU: