(1) Subject to the provisions of sub-section (5) and such restrictions and conditions as may
be prescribed, a rebate of input tax as provided in this section shall be claimed by or be
allowed to a registered dealer in the circumstances specified below-
(a) Where a registered dealer purchases any goods specified in Schedule II other
than those specified in Part III of the said Schedule within the State of Madhya
Pradesh from another such dealer after payment to him input tax for –
(1) 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;
or
(2) consumption or use for/in the manufacture or processing or mining of
goods specified in Schedule II 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; or
(3) use as packing materials in packing of goods specified in Schedule II; or
(4) use as plant, machinery, equipment and parts thereof in respect of goods
specified in Schedule II; or
(5) consumption or use for/in the manufacture or processing or
packaging of goods declared tax free under section 16, for sale in
the course of export out of the territory of India ; or
(5a) consumption or use for/in the manufacture or processing or
packaging, other than mentioned in sub-clause (5) above, and in
connection with sale, of goods declared tax free under section 16;
or
(5b) as plant, machinery, equipment and parts thereof in consumption
or use for/in generation, transmission or distribution of electrical
energy; or
(6) disposal of,-
(i) such goods, or
(ii) goods specified in Schedule II, manufactured or processed or
mined out of such goods otherwise than by way of 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,
he shall claim or be allowed in such manner and within such period as may be
prescribed, input tax rebate of the amount of such input tax –
(i) in case of goods referred to in sub-clauses (1), (2), 3/4 (3), (4) and (5)
; and
(ii) in case of goods referred to in sub-clauses 3/4 (5a), (5b) 3/4 and (6),
which is in excess of 4 percent of the purchase price, net of input tax, of
such goods;
(b) Where a dealer makes an application for grant of a registration certificate under
clause (a) or clause (b) of sub-section (2) of section 17 on or after the
commencement of the Act, he shall, in respect of goods specified in Schedule II
other than those specified in part III of the said Schedule, purchased, on or after
such commencement, by him within the State of Madhya Pradesh from another
such dealer after payment to him input tax and held in stock by him on the date
of validity of the registration certificate issued to him under clause (a) or clause
(b) of sub-section (2) of section 17, claim or be allowed input tax rebate of the
amount of such tax in accordance with the provisions of clause (a) above.
(c) Where a registered dealer who has opted for composition under section
11 for a year, does not opt for composition in subsequent year, he shall
claim or be allowed input tax rebate in respect of the goods held in stock
on the date of commencement of the subsequent year in accordance with
the provisions of clause (a) above.
(d) Notwithstanding anything contained in clause (a), where the goods
purchased within the State of Madhya Pradesh by canteen stores
department, registered under the Act, from a registered dealer after
payment to him input tax, are sold as canteen stores by the canteen
stores department to serving military personnel and ex-servicemen
directly or through regimental or unit run canteens, the canteen stores
department shall claim or be allowed in such manner and within such
period as may be prescribed, input tax rebate of the amount of such input
tax, which is in excess of 4 percent of the purchase price, net of input tax,
of such goods .
20(e) Notwithstanding anything contained in clause (a), Where a dealer,
who is a builder and developer carrying on the business of
constructing residential and / or commercial buildings, makes an
application for grant of a registration certificate under clause (a) of
sub-section (2) of section 17 after the prescribed period but before
31st March, 2008, he shall, in respect of goods specified in Schedule
II other than those specified in part III of the said Schedule,
purchased, on or after date of liability, by him within the State of
Madhya Pradesh from a registered dealer after payment to him input
tax, claim or be allowed input tax rebate of the amount of such tax in
accordance with the provisions of clause (a) above.20
(1A)
Subject to such restrictions and conditions as may be prescribed, where a
registered dealer purchases natural gas as specified in Part III of Schedule II
within the State of Madhya Pradesh from another such dealer after payment
to him input tax and consumes the natural gas so purchased in generation
of electrical energy, he shall claim or be allowed in such manner and within
such period as may be prescribed, input tax rebate of the amount of such
input tax which is in excess of 5 percent of the purchase price, net of input
tax, of such natural gas.
(1B)
Subject to such restrictions and conditions as may be prescribed, where a registered
dealer sells the goods as may be notified by the State Government, and the dealer
consumes the goods purchased by him within the State of Madhya Pradesh from another
such dealer after payment to him input tax, in the manufacture of such notified goods, he
shall claim or be allowed in such manner and within such period as may be prescribed,
input tax rebate of the amount of such tax. The provisions of clause (a) of sub-section (1)
shall mutatis mutandis apply to the input tax rebate claimed or allowed under this subsection.
[from 10.8.10]
(2) Notwithstanding any thing contained in this Act, where-
(a) any official or personnel of –
(i) any foreign diplomatic mission or consulate in India; or
(ii) the United Nations Organisation or any other similar international body,
entitled to privileges under any convention to which India is a party or under any law for
the time being in force; or
(b) any consular or diplomatic agent of any mission, the United Nations Organisation or
other body referred to in sub-clause (i) or sub-clause (ii) of clause (a),
purchases any goods specified in Schedule II other than those specified in part III of the
said Schedule within the State of Madhya Pradesh from a registered dealer after payment
to him input tax for himself or for the purposes of such mission, United Nations
Organisation or other body, he shall be entitled to claim or be allowed, in such manner
and within such period as may be prescribed, input tax rebate of the amount of such input
tax and such rebate shall be granted by way of refund.
(3) The input tax rebate by a registered dealer under sub-section (1) 20and (1A)20 shall be
adjusted in such manner as may be prescribed towards the tax payable by him under this
Act or under the Central Sales Tax Act, 1956 (No. 74 of 1956) and the balance, if any,
shall be carried over for adjustment towards tax payable in the subsequent year :
Provided that the input tax rebate, which remains unadjusted even after two years
from the close of the relevant financial year, shall be granted by way of refund.
(4) Notwithstanding any thing contained in sub-section (3), if any amount of input tax rebate
in respect of the goods purchased by a registered dealer being,-
(i) for sale in the course of export out of the territory of India; or
(ii) for consumption or use for/in the manufacture or processing or mining of goods
for sale in the course of export out of the territory of India; or
3/4 (iii) for use as plant, machinery, equipment and parts thereof; or
(iv) for sale as canteen stores; 3/4
4 (v) for sale or supply to the Central Government or a State Government. 4
20(vi) natural gas consumed in generation of electrical energy,20
is not adjustable towards any tax payable by him, such rebate shall be granted by way of
refund.
(5) (a) (i) Where a registered dealer has claimed and adjusted input tax rebate
towards the tax payable by him according to his return or returns, such
dealer shall in the event of disposal of,-
(a) goods; or
(b) goods specified in Schedule II, manufactured or processed or
mined out of the goods,
otherwise than by way of 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, be liable to pay the amount of input tax or the
amount at the rate of 4 percent of the purchase price, net of input tax, of
such goods, whichever is lower, towards the input tax rebate in respect
of the aforesaid goods adjusted by him.
(ii) Where a registration certificate of a registered dealer who has claimed
and adjusted input tax rebate towards the tax payable by him according
to his return or returns, is cancelled under sub-section (10) of section 17,
such dealer shall pay the amount claimed by way of input tax rebate in
respect of the goods held in stock by him on the date the order of
cancellation of the registration certificate takes effect.
(b) Where the amount of tax or the amount of input tax rebate which a registered
24
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 3/411 and 11 A3/4;
(iv) who opts for composition under section 3/411 and 11 A3/4;
(v) 3/4Omitted. 3/4
(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).
