Section 9(3) in The M.P. Vanijyik Kar Adhiniyam, 1994
(3)Where any goods purchased by a registered dealer under clause (a) or clause (b) of sub-section (2) are used by him contrary to the purpose specified therein or in violation of the restrictions and conditions prescribed under the said sub-section such registered dealer shall be liable to pay in such manner as may be prescribed, tax or penalty, as the case may be, at the rate equal to the difference of the full rate of tax under sub-section (1) and the concessional rate of tax under sub-section (2), in respect of such goods :Provided that no tax or penalty shall be imposed on a registered dealer where any goods purchased for use by him as raw material or incidental goods under clause (a) or clause (b) of sub-section (2), are sold by him subject to such restrictions or conditions as may be prescribed, to another registered dealer who is a manufacturer of goods declared tax free under Section 15 or goods exempted in whole under Section 17, or who holds a recognition certificate under Section 25 for the purpose specified in the said clauses.Explanation. - In this Section - (i) the expression 'taxable goods' shall mean the goods liable to tax under this Act;(ii)the amount payable for violation of restrictions and conditions shall be by way of tax in respect of goods other than declared goods and by way of penalty in respect of declared goods.
