Section 7A(4)(b) in The M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976
(b)Every dealer who purchases local goods from a registered dealer who has compounded his liability shall be deemed to have purchased goods which have suffered entry tax and accordingly on the entry of such local goods into other local areas consequent on such purchase, entry tax shall not be payable by the purchasing dealer.]