(1) Every dealer, who is liable to pay under sub-section (1), sub-section (2), or sub-section (5), of section 9, section 10, section 15 or sub-section (3) of section 27 and who is registered, shall, in addition to the tax payable under any other provisions of this Act, be also liable to pay tax under this Act on all his purchases from-

(a) a dealer, who is not registered, of goods, other than gold, rice, wheat, raw jute, dry chilli produced in West Bengal, silk fabric made or manufactured in West Bengal intended for direct use in the manufacture in West Bengal of goods for sale by him, and of containers and other materials for the packing of goods so purchased or manufactured ;

(c) any person whether a dealer or not, who is not registered, of goods, other than gold, rice, wheat, raw jute, dry chilli produced in West Bengal, silk fabric made or manufactured in West Bengal and intended for any purpose, other than the purpose specified in clause (a) ;

Explanation.- For the purpose of this sub-section, the expression "a registered dealer, to whom a declaration" includes a registered dealer to whom in accordance with the provisions contained in the second proviso to sub-section (2) of section 17 and the rules made thereunder, no such declaration is required to be furnished by the purchasing dealer in respect of sales as referred to in sub-clause (i) of clause (b) of sub-section (2) of that section, of goods purchased by him.

(2) The burden of proving that any purchase effected by a dealer is not liable to tax under sub-section (1) shall be on such dealer.

(3) Every registered dealer whose business has been discontinued or whose liability to pay tax has ceased under sub-section (4) of section 9 or whose registration has been cancelled under sub-section (10) of section 26 or sub-section (5), or sub-section (6), of section 27, and who, on the date of such discontinuance or on the date of such cessation or on the date of such cancellation, whichever is earlier, holds stock of any goods, shall, in addition to tax payable by him under this Act, be liable to pay tax, at the rate applicable to sales of such goods, on the purchase price of -

(a) goods held in stock for resale, or containers or other materials held in stock for packing of any goods for resale ;

(b) goods held in stock for use in the manufacture of goods for sale, and containers or other materials held in stock for packing of -

(i) the goods held in stock for use in the manufacture of goods for sale, or

(ii) the goods intended to be manufactured for sale ;

(c) goods and containers or other materials for packing which have been used in the goods manufactured or packing of the goods so manufactured and where such manufactured goods are held in stock for sale,

where such goods, containers or other materials for packing have been purchased by him by issuing declaration referred to in the first proviso or the second proviso to sub-section (2), or the proviso to sub-clause (ii) of clause (a) of sub-section (3), of section 17 :

PROVIDED that the tax payable by him under this sub-section shall be reduced by the amount of tax, if any, realised from him at the time of sale to him by the dealer selling such goods, containers or other materials for packing.