Section 21 in The M.P. Vanijyik Kar Adhiniyam, 1994
21. Liability of a dealer purchasing exempted goods.
- Notwithstanding anything contained in Section 20, where any condition of exemption imposed under Section 17 requires that the registered dealer purchasing the goods exempted in whole or in part from the payment of tax under this Act, shall furnish a declaration or certificate to the effect that-(a)the goods purchased shall be used by him for a specified purpose and within a specified time; or(b)the goods purchased shall be disposed of by him in a specified manner and within a specified time;and contrary to such declaration or certificate, if such dealer-(i)does not use the goods for the specified purpose or within the specified time; or(ii)does not dispose of the goods in the specified manner or within the specified time,he shall be liable to pay the tax on the purchase price of such goods at the full rate mentioned in column (3) of Schedule-II and penalty equal to 25 per cent of the amount of tax payable under this Act:Provided that where the goods were exempted from payment of tax in part, the registered dealer instead of paying the tax at the full rate, shall be liable to pay the difference between the tax already paid and the tax payable at the rate mentioned in column (3) of Schedule-II on the purchase price of such goods, in addition to any penalty, that may be imposed on him under this Section.
