Levy of Tax on Purchases
Every dealer liable to pay tax who in the course of his business purchases any goods.
(i) from a registered dealer or a dealer in the circumstances in which no tax under Section 9 is payable by that registered dealer or a dealer on the sale price of such goods, or –
(ii) from a person, shall be liable to-pay tax on the purchase price of such goods, if after such purchase, the goods are not sold within the State of Jharkhand or in the course of Inter-State trade and commerce or in the course of export out of the territory of India, but are-
(a) sold or disposed of otherwise, or
(b) used or consumed in the manufacture of goods declared to be exempt from tax under this Act, or
(c) after their use or consumption in the manufacture of goods, such manufactured goods are disposed of otherwise than by way of sale in the State or in the course of inter-State trade and commerce or export out of the territory of India; or
(d) used or consumed otherwise, such tax shall be levied at the same rate at which tax under Section 9 would have been levied on the sale of such goods within the state on the date of such purchase.
Explanation: Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in sub-clause 1(ii) and sub-clause 1(ii)(c).