Section 12(1) in Tamil Nadu Value Added Tax Act, 2006
(1)Subject to the provisions of sub-section (1) of section 3, every dealer, who in the course of his business purchases from a registered dealer or from any other person, any goods (the sale or purchase of which is liable to tax under this Act), in circumstances in which no tax is payable by that registered dealer on the sale price of such goods under this Act, and either -(a)consumes or uses such goods in or for the manufacture of other goods for sale or otherwise;or(b)disposes of such goods in any manner other than by way of sale in the State; or(c)despatches or carries them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce or in the course of export out of the territory of India; or(d)installs and uses such goods in the factory for the manufacture of any goods ,shall pay tax on the turnover relating to the purchase aforesaid at the rate specified in the Schedules to this Act.
