20 Levy of tax on turnover of purchase of goods in certain circumstances

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).