Section 13(7) in Uttar Pradesh Value Added Tax Act, 2008
(7)Except where-(a)purchased goods; or(b)manufactured goods which are manufactured by using purchased goods; or(c)packed goods which are packed by using or consuming purchased goods are to be sold in the course of the export of the goods out of the territory of India, no credit of any amount of input tax shall be claimed by a dealer under sub section (4) and no facility of input tax credit shall be allowed to a dealer in respect of purchase of any goods where -(i)sale of such goods by the dealer is exempt from payment of tax under clause (c) of section 7; or(ii)such goods are to be used or consumed in manufacture or packing of any goods and sale of such manufactured or packed goods by the dealer is exempt from payment of tax either under clause (b) or clause (c) of section 7.(iii)such goods are for transfer of right to use such goods."
