(2)This section applies to any small-scale industrial undertaking which fulfills all the following conditions, namely:-(i)it begins to manufacture or produce articles after the 30th day of September, 1977 ][but before the 1st day of April, 1990] [ Inserted by Act 12 of 1990, Section 21 (w.e.f. 1.4.1990).][, in any rural area; [Inserted by Act 29 of 1977, Section 18 (w.e.f. 1.4.1978).](ii)it is not formed by the splitting up, or the reconstruction, of a business already in existence:Provided that this condition shall not apply in respect of any small-scale industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33-B, in the circumstances and within the period specified in that section;(iii)it is not formed by the transfer to a new business of machinery or plant previously used for any purpose;(iv)it employes ten or more workers in a manufacturing process carried on with the aid of power, or employes twenty or more workers in a manufacturing process carried on without the aid of power.Explanation. - Where in the case of a small-scale industrial undertaking, any machinery or plant or any part thereof previously used for any purpose is transferred to a new business and the total value of the machinery or plant or part so transferred does not exceed twenty per cent. of the total value of the machinery or plant used in the business, then, for the purposes of clause (iii) of this sub-section, the condition specified therein shall be deemed to have been fulfilled.
