13. No deduction from turnover except on a certificate. - (1) There shall not be deducted from the turnover of sales, sales of good: to a Licensed dealer, Recognised dealer or to a Commission agent holding a permit purchasing on behalf of his principal, as, provided in sections 7, 8 and 10 unless-
(A)the Licensed dealer-(i)certifies in the prescribed form that the goods are purchased for resale in the course of inter-State trade or commerce, or in the course of export out of the territory of India, and that such goods will be so resold within twelve months from the date of such purchase by himself or by-another Licensed dealer to whom he resells the goods; or(ii)certifies in the prescribed form that the goods are intended-(a)for resale by him otherwise than in the course of inter-State trade or commerce or export out of the territory of India, or(b)for resale by him in the course of inter-State trade or commerce or export out of the territory of India, within twelve months from the date of such purchase, or(B)the Recognised dealer certifies in the prescribed form, that the goods other than prohibited goods sold to him are goods purchased by him for use by him as raw or processing materials or as consumable stores in the manufacture of taxable goods for sale by him; or(C)the Commission agent certifies in the prescribed form that the goods are purchased on behalf of his principal who-(i)is a Licensed dealer-(a)and the goods will be resold either by the principal himself or by another Licensed dealer to whom that principal will sell the goods in the course of inter-State trade or commerce, or in the course of export out of the territory of India within twelve months from the date of their' purchase by the Commission agent, or(b)who will resell the goods-(i)otherwise than in the course of inter-State trade or commerce or export out of the territory of India, or(ii)in the course of inter-State trade or commerce or export out of the territory of India, within twelve months from the date of such purchase, or(ii)is a Recognised dealer, and the goods purchased being goods other than prohibited goods will be used by the principal as raw or processing materials or as consumable stores in the manufacture of taxable goods for sale,and that the Commission agent will dispatch the goods to his principal or to the principal's order within three months from the date of their purchase by the Commission agent.(2)Where a Licensed dealer or a Commission agent has given a certificate as required by clause (A)(i) or as the case may be clause (C)(i)(a), of sub-section (1) and the goods specified in the certificate are sold to another Licensed dealer, the Licensed dealer, to whom the goods are sold shall, when he resells the goods send to the first mentioned Licensed dealer or, as the case may be, the Commission agent, a certificate in the prescribed form stating inter-alia whether goods were resold in the course of inter-State trade or commerce or in the course of export out of the territory of India and the date on which the goods were so resold.
