Section 10(1) in The M.P. Vanijyik Kar Adhiniyam, 1994
(1)Every dealer who in the course of his business purchases any goods specified in Schedule II-(i)from a registered dealer in the circumstances in which no tax under Section 9 is payable by that registered dealer on the sale price of such goods; or(ii)from any other person;shall be liable to pay tax on the purchase price of such goods, if after such purchase the goods are not sold within the State or in the course of inter-State Trade or Commerce or in the course of export out of the territory of India, but are-(a)sold or disposed of otherwise; or(b)used or consumed in the manufacture or processing of other goods or used or consumed otherwise;such tax shall be levied at the same rate at which tax under sub-section (1) of Section 9 would have been levied on the sales of such goods within the State on the date of such purchase.
