20. Liability to purchase tax on certain stocks of goods. - (1) Where a dealer, liable to pay tax under this Act,-
(a)dies, or(b)transfers or otherwise disposes of his business, or effects any change in the ownership thereof, or(c)is a firm, company, society or other association of persons, or a trust, which is dissolved, liquidated, wound up, or revoked, or(d)is a Hindu undivided family, and the family is partitioned, or(e)discontinues his business,and the stock of goods held by such dealer immediately before the death, transfer, disposal, change, dissolution, liquidation, winding up, revocation, partition or discontinuance, as the case may be, includes-(i)taxable goods purchased by him from a person who is not a Registered dealer, or(ii)taxable goods purchased by him on a certificate given by him under section 12 or 13 or on a certificate given by him under section 49.then there shall be levied a purchase tax on the purchase price of such taxable goods at the relevant rate of purchase tax applicable thereto, as if the dealer had become, liable to pay purchase tax on such goods under section 15, 16 or 50 as the case may be:Provided that, where the business carried on-by such dealer is continued after such death, transfer, disposal, change, dissolution, liquidation, winding up, revocation or partition, as the case may be, and the person carrying on such business shows to the satisfaction of the Commissioner that,-(a)any taxable goods referred to in sub-clause (i) have been resold, or(b)any taxable goods referred to in sub-clause (ii) have been used for the purpose certified or, as the case may be, resold or dispatched in the manner and within the period certified,then in respect of such goods, no purchase tax shall be levied under this section.(2)Where the certificate of registration issued to a dealer is cancelled on the ground, that in the previous year his turnover of purchases or his turnover of sales did not exceed the relevant limit applicable to him under sub-section (4) of section 3 and the stock of goods held by him immediately before such cancellation includes taxable goods purchased by him on a certificate given under section 12, 13 or 49, there shall be levied on the purchase price of such goods a purchase tax which shall be calculated at the relevant rate of purchase tax applicable thereto under section 15 or under sub-section (3) of section 16, or as the case may be, under section 50:
