Section 27(1) in The M.P. Vanijyik Kar Niyam, 1995
(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.
