Section 7 in The M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976
7. [ Registered dealers to issue bill etc., stating that goods sold are local goods. [Substituted by M.P. Act No. 22 of 1977 (w.e.f. 1-5-1977).]
(1)Every registered dealer who, in the course of his business, manufactures, produces or grows any goods specified in [Schedule II] in a local area in such manner that the goods become local goods in relation to that local area, shall, on the sale of such local goods to any other registered dealer, issue to him a bill, invoice or cash memo specifically staling in such manner as may be prescribed, that the goods being sold are local goods in relation to such local area and that no entry tax has been paid on such goods.(2)Where the goods mentioned in sub-section (1) are purchased and sold in the course of their business by a chain of registered dealers, the selling registered dealer shall issue a bill or invoice or cash memo, containing the statement referred to in sub-section (1) :Provided that where the goods are purchased by a registered dealer who effects the entry of such goods into a local area other than the local area in relation to which such goods are local goods, it shall not be necessary for him to make the statement referred to in sub-section (1).(3)[ Every registered dealer referred to in sub-sections (1) and (2) shall maintain a separate account of purchases and consumption, use or sale of local goods and separate bill books and invoices for the sales of local goods effected by him in the same local area in relation to which the goods are local goods.] [Substituted by Act No. 24 of 1978 (w.e.f. 1-10-1978).](4)[ ***] [Omitted by Act No. 24 of 1978 (w.e.f. 1-10-1978).].(5)Where/ a registered dealer referred to in sub-section (1) or sub-section (2) has in the course of his business, sold local goods to other registered dealers and has failed to make the statement referred to in sub-section (1) [***] [Omitted by Act No. 24 of 1978 (w.e.f. 1-10-1978).], it shall be presumed that he has facilitated the evasion of entry tax on the local goods so sold and accordingly [unless the contrary is proved by him, he shall be liable to pay penalty which shall not be less than two times, but shall not exceed five limes of the amount of entry tax payable on such goods] [Substituted by Act No. 36 of 1997 (w.e.f. 1-10-1997).] as if they were not goods of local origin.(6)Where any registered dealer referred to in sub-section (2), in the course of his business has sold local goods purchased by him to other registered dealers and a bill, cash memo or invoice is not issued by him as required by sub-section (2) [***] [Omitted by Act No. 24 of 1978 (w.e.f. 1-10-1978).]; it shall be presumed that he has facilitated the evasion of entry tax on the local goods so sold and unless the contrary' is proved by him, he shall be liable to pay penalty which shall not be less than two times, but shall not exceed five times of the amount of entry tax payable on such goods as if they were not goods of local origin :[Provided that no penalty under sub-section (5) and sub-section (6) shall be imposed unless a reasonable opportunity of being heard is given to the dealer.] [Inserted by Act No. 36 of 1997 (w.e.f. 1-10-1997)]
