(3)Input tax credit shall be allowed for purchase made within the State from a registered dealer holding a valid certificate of registration in respect of goods intended for the purpose of-(a)Sale of resale by him in the State;(b)Use as inputs or as capital goods in the manufacturing or processing of goods, other than those specified in Schedule A and Schedule C and Schedule D for sale;(c)Sale of goods subject to levy of tax at zero rate under section 18;(d)For use as containers for packing of goods, other than those exempt from tax under this Act, for sale or resale; or(e)Transfer of stock of taxable goods other than by way of sale, to any place outside the State:Provided that-(a)The input tax credit on purchases intended for the purpose of clause (e) shall only be allowed in respect of the amount of tax paid or payable in excess of tax at the rate of four per centum;(b)If goods purchased are used partially for the purposes specified in this sub-section, input tax credit shall be allowed proportionately to the extent they are used for such purposes; and(c)Where a registered dealer sells or despatches goods, both taxable and exempt under this Act, the input tax credit shall be allowed proportionately only in relation to the goods which are not so exempt.
