Levy of tax on turnover of purchase of goods in certain circumstances
20. (1) Where a taxable person purchases taxable goods from a person other than a taxable person or a registered person, and -
(a) uses such goods in the manufacture of goods, declared tax-free under section 16; or
(b) uses such goods in the manufacture of any goods other than those specified in Schedule-A, and sends the goods so manufactured outside the State otherwise than by way of sale in the course of inter-State trade or commerce or exports out of India; or
(c) disposes of such goods in any manner other than by way of sale in the State; or
(d) despatches them to a place outside the State otherwise than as a result of sale in the course of inter-state sale, trade or commerce or export out of India,
there shall be levied a tax on the taxable turnover of purchases of such goods at the rate applicable to such goods as per the Schedules :
Provided that no tax shall be levied under this section, if a tax has already been paid on such goods under section 19.
(2) Where a registered person purchases taxable goods from a person, other than a taxable person or a registered person, and disposes of such goods in any manner, there shall be levied a tax on the turnover of such purchases at the rate(s) specified in the Schedule(s). |