Reduction in tax liability
 
  1. Where an importer of a motor vehicle liable to pay tax under this Act, being a dealer in motor vehicles, becomes liable to pay tax under the General Sales Tax Act, as a result, of the sale of such motor vehicle, then the amount of tax payable under the General Sales Tax Act, shall be reduced by the amount of the tax paid under this Act.
    Provided that no tax shall be levied and collected in respect of any motor vehicle which was registered in any Union Territory or any other State under the provisions of the Motor Vehicles Act, 1988, prior to period of fifteen months or more from date on which it is registered in the State : 
    Provided further that no tax shall be levied and collected in respect of any motor vehicle which is owned by Central Government and is used exclusively for the purposes relating to the Defence of India.
  2. An importer, other than a dealer, liable to pay tax under this Act, causes entry of motor vehicle into a local area for use or sate therein, shall pay tax to such authority, as Commissioner may notify within fifteen days from the date of entry of such vehicle into a local area or before an application is made for registration of the said vehicle or assignment of a new registration mark to such vehicle under the Motor Vehicles Act, 1988 whichever is earlier.
  3. Where an importer who, not being a dealer in motor vehicles, had purchased a motor vehicle for his own use in any Union Territory or any other State, then the tax payable by him under this Act, shall, subject to such conditions as may be prescribed, be reduced by the amount of tax paid, if any, under the law relating to General Sales Tax in force in that Union Territory or State.