Section 27(3) in The M.P. Vanijyik Kar Niyam, 1995
(3)No tax or penalty shall be assessed or imposed under sub-section (3) of Section 9 on a registered dealer who is a manufacturer of tax free or goods exempted in whole or who holds a recognition certificate under Section 25 and who after the purchase of the raw material at the concessional rate of tax under the provisions of sub-section (2) of the said Section sells such goods for use as raw material to another registered dealer if,-(i)such raw material is specified in the registration certificate of the purchasing dealer subsequently purchasing the raw material aforesaid as being required by him for the manufacture of tax free or goods exempted in whole or taxable goods, as the case may be, for sale;(ii)the selling dealer obtains a declaration in Form 34 duly filled in and signed by the purchasing registered dealer; and(iii)the selling dealer produces at the time of his assessment the copy or the counterfoil of the relevant cash memorandum or bill or other relevant document in support thereof and a true declaration or declarations obtained under clause (ii).
