10. Levy of tax on raw material and processing articles.
(1)Notwithstanding anything contained in section 4, but subject to such restrictions and conditions as may be prescribed, the rate of tax payable on the sale to or purchase by a registered dealer of any raw material for the manufacture in the State of goods for sale by him within the State or in the course of interstate trade or commerce or in the course of export outside the territory of India shall be at such concessional rate as may be notified by the State Government.(2)Where after affording reasonable opportunity of being heard it is determined that a registered dealer has paid tax at a concessional rate under sub-section (1) and the goods are not utilised by him for the purpose specified in the said sub section, he shall be liable to pay the difference of the amount of tax which would have been liable at full rate and the amount of tax paid under sub-section (1) with interest at the rate of two percent per month.(3)Notwithstanding anything contained in Section 4, and subject to such conditions and restrictions as may be prescribed, sale to or purchase by a registered dealer of articles (other than raw material) specified in the certificate of registration of the registered dealer purchasing the articles and required by him for use in the manufacture or processing of goods for sale or in mining or in generation or distribution of electricity shall, unless the articles are taxable at the lower rate, be liable to tax at four percent on the condition that the dealer selling the articles shall furnish to the assessing authority in the prescribed manner, a prescribed declaration duly filled and signed by the registered dealer to whom the articles are sold.(4)Where after affording reasonable opportunity of being heard, it is decided that the articles purchased under sub-section (3) are utilised by the purchasing dealer for any purpose other than those specified in the said sub-section or while purchasing any articles he represents wrongly that such articles are covered by his certificate of registration as specified in sub-section (3), he shall be liable to pay the difference between the amount of tax which would have been leviable on the purchase price of such articles at the full rate and the amount of tax paid under subsection (3) of this section, with interest at the rate of two percent per month.
