Section 4B(1)(b) in The Jammu and Kashmir General Sales Tax Act, 1962
(b)purchase taxable goods, from any source in the State and uses them in the State in the manufacture of any other goods and disposes of the manufactured goods in any manner otherwise than by way of sale whether within the State or in the course of inter-State trade or commerce or in the course of export out of the territory of India within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act, 1956 ; or