(1) Every dealer who, as a shipper of jute, has been liable immediately before the appointed day to pay tax under section 12 of the West Bengal Sales Tax Act, 1994 and who would have continued to be so liable on such appointed day under that Act had this Act not come into force, shall, in addition to his liability to pay tax, if any, under any other provisions of this Act and subject to the provisions of sub-section (3), be liable to pay tax on all his purchases of raw jute in West Bengal with effect from the appointed day.

(2) Every dealer, being a shipper of jute, to whom the provisions of sub-section (1) do not apply, shall, in addition to his liability to pay tax, if any, under any other provisions of this Act and subject to the provisions of sub-section (3), be liable to pay tax on all his purchases of raw jute in West Bengal from the date of first purchase effected on or after the appointed day.

(3) The dealer referred to in sub-section (1) or sub-section (2), as the case may be, shall be liable to pay tax on such part of his turnover of purchases of raw jute in West Bengal, as referred to in sub-clause (b) of clause (54) of section 2 which remains after deducting therefrom such purchases which are shown to the satisfaction of the Commissioner to have taken place in the course of inter-State trade or commerce within the meaning of section 3 of the Central Sales Tax Act, 1956 or in the course of import of goods into, or export of the goods out of, the territory of India within the meaning of section 5 of that Act.

(4) Every dealer who incurs liability to pay tax under this section, shall continue to be so liable until the expiry of three consecutive years commencing on or after the appointed day and such further period after the date of such expiry as may be prescribed, during each of which, he has not effected any purchase of raw jute in West Bengal.

(5) The provisions of sub-section (2) shall apply to every dealer whose liability to pay tax ceases under sub-section (4) as if such dealer has not ever become liable to pay tax under this section.