27. Levy of tax at concessional rate on sales of raw material and incidental goods to manufacturers of tax free goods or goods exempted in whole under Section 17 and to manufacturers holding recognition certificate under Section 25.
(1)Tax at concessional rate under sub-section (2) of Section 9 on sales of goods for use as raw material or incidental goods for the manufacture of tax free goods or taxable goods, as the case may be, for sale shall be levied subject to the following restrictions and conditions, namely :(i)the sale shall be effected to a registered dealer;(ii)the goods being sold for use as raw material or incidental goods should have been specified as such in the registration certificate of the purchasing dealer;(iii)the goods manufactured out of raw material shall be sold by the dealer manufacturing them, in the Sate of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India;(iv)at the time of assessment, the selling dealer shall produce a declaration in Form 32 or 33, as the case may be, duly filled in and signed by the purchasing registered dealer and the copies or counterfoils of the relevant cash memoranda or bills or other relevant documents in support of his claim. A declaration in Form 32 or 33 may cover more than one transaction of sale, provided the total sale price covered by the declaration does not exceed rupees one lac.(2)The tax or penalty, as the case may be, payable by a registered dealer under sub-section (3) of Section 9 for contravention of the restrictions and conditions laid down in sub-rule (1) of the provisions of sub-section (2) or the said Section shall be paid by him alongwith the tax payable according to his return in Form 12.(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).
