(1)Nothing in this Act, except sections 8,9 and 9A shall apply to the manufacture, possession, use, transport or importation of any explosive—
(a)by any of the 5[Armed Forces of the Union, and ordnance factories or other establishments of such Forces) in accordance with rules or regulations made by 6***the Central Government;
(b)by any person employed under 7[the Central Government or under a State Government] in execution of this Act.
(2)The Central Government may by notification in the Official Gazette exempt, absolutely or subject to any such conditions as it may think fit to impose, 1[any explosive and any person or cl ass of per s ons f r om al l or any of t he pr ovi s i ons of t hi s Act or t he r ul es made t her eunder .]