ORDER N. Kumar, J.—This revision petition pertaining to different assessment orders is preferred by the assessee challenging the order passed by the Appellate Tribunal declining to grant the benefit of deduction of the value of the raw material, the value of the manufactured goods and also holding that the assessee is not entitled to exemption from payment of entry tax in respect of plant and machinery as claimed by him. The assessee is a limited company registered under the Companies Act, 1956. The assessee is registered under the Karnataka Sales Tax Act, 1957 and Central Sales Tax Act, 1956. Section 5C inserted in the Karnataka Tax on Entry of Goods Act, 1979 (for short, hereinafter referred to as "the KTEG Act") came into effect from May 1, 1992. The said section offers an option to pay entry tax at the compounded rates in lieu of tax under section 3 of the KTEG Act, 1979. The said provision provided for two modes for calculation of tax, one for the dealers to cause the entry of goods liable for tax under the Act in India, the local area for use, the consumption or sale therein and another for the manufacturer causing entry of goods required for the purpose of manufacturing. Rule 8B was incorporated prescribing certain conditions, apart from the one prescribed under section 5C of the Act. The appellant was assessed to entry tax under the said scheme of composition up to the period 1993-94. However, section 5 came to be amended by Amendment Act 14 of 1994 with effect from April 1, 1994. The assessee has been paying tax at the compounded rates for the period from 1992-93 in accordance with section 5C read with rule 8B of the Act. The assessing authority concluded the assessment under section 5(4) after considering the reply to the show-cause notice determining the total turnover and the taxable turnover. The said order was duly served on the assessee on January 18, 1997. The assessee filed a letter on February 1, 1997 stating that turnover relating to purchases of raw materials and components for the period was not considered for exemption. During the said period raw materials and the components were exempted under (ii) proviso to Explanation II of section 5C. The assessing authority noticed the aforesaid mistake and granted the benefit to which the assessee is entitled to in law. During the said period raw materials and the components were exempted under (ii) proviso to Explanation II of section 5C. The assessing authority noticed the aforesaid mistake and granted the benefit to which the assessee is entitled to in law. However, the said benefit for the period subsequent to August 1, 1992 was denied to the assessee. Aggrieved by the same, the assessee preferred an appeal which appeal came to be dismissed. Aggrieved by the same, the assessee preferred a second appeal before the Tribunal which upheld the order of the lower authorities and dismissed the appeal. Aggrieved by the same, the assessee is before this court. 2. The learned counsel appearing for the revision petitioners submitted that once the assessee opts for composition scheme under section 5C, as the said claim did not provide for payment of composition tax on plant and machinery, the assessee is not liable to pay any entry tax on plant and machinery. 3. Secondly, he contended that the entry of goods, that is the raw materials into the local area made by the assessee, if it is exempted from payment of entry tax the same has to be deducted out of the value of the manufactured goods before imposition of composition tax. His grievance is that the assessing authorities have not granted the same and therefore the impugned orders are liable to be set aside. 4. Per contra, the learned Government Advocate supported the impugned order. 5. Section 5C(1) reads as under : 5C. His grievance is that the assessing authorities have not granted the same and therefore the impugned orders are liable to be set aside. 4. Per contra, the learned Government Advocate supported the impugned order. 5. Section 5C(1) reads as under : 5C. Composition of tax.--(1) Notwithstanding anything contained in section 3 but subject to the conditions laid down in this section and such other conditions and such circumstances as may be prescribed, any dealer liable to pay tax under this Act, may at his option, instead of paying tax under the said section pay such tax by way of composition amount at the following rates, namely : (i) In the case of a dealer who brings or causes to be brought into a local area any goods liable to tax under this Act, whether on his own account or on account of his principal or any other person, or who takes delivery or is entitled to take delivery of such goods on its entry into a local area for sale therein, the tax payable by such dealer shall be calculated at the rates notified under section 3 on the turnover of such goods : Provided that where the goods brought or caused to be brought into a local area are already subject to tax under section 3 or under this clause or are exempt from tax under any of the provisions of this Act, no tax shall be payable on the turnover of such goods subject to production of proof of payment of tax on such goods or proof of such goods having subjected to tax earlier : Provided further that no tax shall be levied under this clause on the turnover relating to goods held in stock as on the April 30, 1992 and were not liable to tax under the Act prior to the said date. 6. Therefore the composition of the tax scheme is applicable to those goods which are brought into the local area for sale therein. Therefore, if the goods are brought into the local area for the purpose of it being used and not for sale then section 5C is not attracted. For such goods section 3(1) applies. 6. Therefore the composition of the tax scheme is applicable to those goods which are brought into the local area for sale therein. Therefore, if the goods are brought into the local area for the purpose of it being used and not for sale then section 5C is not attracted. For such goods section 3(1) applies. Therefore, the contention that section 5C is self-contained in itself, it is an alternative to the regular assessment as provided under section 3(1) and therefore once section 5C is not applicable to plant and machinery, it follows that under section 5C he is not liable to pay tax for goods which do not fall under section 5C, cannot be accepted. If particular goods are not liable to tax under section 5C, the liability to pay entry tax for the goods and components is under section 3(1) and unless there is a liability to pay tax under section 3A, section 5C is not attracted at all and section 5C is not attracted to goods which are raw materials received and duly brought into the local area for the purpose of selling either as such or by conversion into a final product. Therefore we do not see any substance in the first contention urged by the learned counsel for the revision petitioner, 7. In so far as the second contention is concerned Explanation II to sub-clause (ii) of section 5C reads as under : For the purposes of levy of tax under this sub-section : (i) an amount equal to forty per cent of the 'value' as determined under Explanation I shall be deducted from such value; (ii) any amount paid as consideration towards the purchase of, (a) raw materials, component parts and inputs which are used in the manufacture of goods and on which entry tax under the Act is paid or payable by the seller of such goods; and (b) raw materials, component parts and inputs which are used in manufacture of goods and on which entry tax is exempt under this Act, shall be deducted from the value of the manufactured goods. 8. In the instant case, the manufactured goods though attracted tax falls under Schedule II that is exempted from payment of entry tax. 8. In the instant case, the manufactured goods though attracted tax falls under Schedule II that is exempted from payment of entry tax. Therefore the raw materials, component parts and inputs whether used in the manufacturer of tractor, shall be deducted from the value of the manufactured goods for the purpose of calculating composition tax under section 5C. The reasoning of the Tribunal that there is no provision providing for such deduction is ex facie incorrect and cannot be sustained. Therefore, the said contention of the revision petitioner is upheld. Consequently, the matter is remanded back to the assessing authority to give deduction to the value of the raw materials, component parts and inputs which are used in the manufacture of goods on which goods entry tax is exempted under this Act and deduct a sum from the value of manufactured goods and reassess the tax liability and if any amount has been paid in excess of amounts due under section 5C, to refund the same to the assessee in accordance with law. To that extent the revision petition is partly allowed. The assessing authority is directed to reassess the tax liability. Ordered accordingly.