. (1) The following shall be zero rate sale for the purpose of this Act, and shall be eligible for input tax credit or refund of the amount of the tax paid on the purchase of goods specified in the First Schedule including capital goods, by a registered dealer in the State, subject to such restrictions and conditions as may be prescribed:-
(i) A sale as specified under sub-section (1) or (3) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956);
(ii) Sale of goods to any registered dealer located in Special Economic Zone in the State,*[ for the purpose of use in manufacture, trading, production, processing, assembling, packaging or for use as packing material or packing accessories] if such registered dealer has been authorised to establish such units by the authority specified by the Central Government in this behalf; and
(iii) Sale of goods to International Organisations listed out in the Fifth Schedule.
(2) The dealer, who makes zero rate sale, shall be entitled to refund of input tax paid *Omitted[or Payable] by him on purchase of those goods, which are exported as such or consumed or used in the manufacture of other goods that are exported as specified in sub-section (1), subject to such restrictions and conditions as may be prescribed.
(3) Where the dealer has not adjusted the input tax credit or has not made a claim for refund within a period of one hundred and eighty days from the date of 1[making zero rate sales] accrual of such input tax credit, such credit shall lapse to Government.