Vat Actupdated - RS Goyal & Associates

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dealer is liable to pay under clause (a) is not adjustable towards any input tax
rebate to his credit, such dealer shall be liable to pay, on the amount so payable,
interest at the rate of 1.5 percent per month for the period commencing from the
date such amount has become due to the date of its payment.
(6) No input tax rebate under sub-section (1) shall be claimed or be allowed to a registered
dealer,-
(i) in respect of any goods specified in Schedule II purchased by him from another
such dealer for sale but given away by him by way of free sample or gift or given
to or received by him by way of replacement;
(ii) in respect of goods specified in Schedule II for use or consumption for
manufacture or processing or mining of goods but the goods manufactured or
processed or mined are given away by him by way of free sample or gift or given
to or received by him by way of replacement;
(iii)
in respect of goods purchased by him from another such dealer who opts for the
composition of tax under the provisions of section 3/4 11 and 11 A 3/4 ;
(iv) who opts for composition under section 3/4 11 and 11 A 3/4 ;
(v) 3/4 3/4 Omitted.
(vi) in respect of plant, machinery, equipment and parts thereof, as may be notified
by the State Government.
20 (vii) in respect of goods, the amount of bill, invoice or cash memorandum of
which exceeds rupees forty thousand and payment of which has not been
made by crossed cheque.
(viii) in respect of goods, the amount of tax included in bill, invoice or cash
memorandum of which exceeds rupees one thousand and it has not been
authenticated in accordance with the provision of sub-section (1-A) of
section 40.
(ix) in respect of goods notified under section 9-A. 20
(7) (a) The State Government, if it deems fit, may, by notification, specify any goods
mentioned in part III of Schedule II for the purpose of claiming or allowing input
tax rebate under this section, when such goods are purchased by a registered
dealer from another such dealer within the State of Madhya Pradesh,-
(i) after payment to him of tax under section 9, or
(ii) which are taxpaid goods at the hands of the selling registered dealer,
for use or consumption of such goods for/in the manufacture or for/in mining of
any goods for sale within the State of Madhya Pradesh or in the course of inter
state trade or commerce or in the course of export out of the territory of India
and thereupon the input tax rebate in respect of such goods shall be claimed or
be allowed in such manner, to such extent, within such period and subject to
such restrictions and conditions as may be specified in the notification.
(b) The provisions of clause (b) of sub-section (1) and sub-sections (3) to (5) shall
apply to input tax rebate that may be claimed or allowed in respect of goods
referred in clause (a). 2
15 : Burden of proof -
The burden of proving that any sale or purchase effected by a dealer is not liable to tax
under Section 9 or Section 10 as the case may be, or that he is eligible for an input tax
rebate under section 14 shall be on the dealer.
16 : Tax free goods -
No tax shall be payable on the sale or purchase of goods specified in Schedule-I,
subject to the conditions and exceptions, if any, set out in the corresponding entry in the
third column thereof.. (upto 31-07-2009)