The tax payable by a dealer or any other person under the Act shall be at the following rates

1. omitted

2. Subject to the provisions of sub-rule (4) the goods specified in part II of the Schedule to the Act shall be exigible to the tax at the rate of 2% of the purchase value.

3. Subject to the provisions of sub-rule (4), the goods specified in Part I of the Schedule to the Act shall be exigible to the tax at the rate of 1% of the purchase value.

4 Goods specified in Part I and Part II of the Schedule to the Act shall be exigible to tax at a concessional rate of fifty percentum of the rate to which such goods are exigible under sub-rule (3) and sub-rule (2) respectively of this rule, when such goods are brought-

(a) for use as raw material by a manufacturer on first entry into a local area of the State from outside the State; or

(b) for use as raw material by a manufacturer on first entry into local area from another local area; or

(c) by a registered dealer into any local area and then sold to a manufacturer for use of raw material:

Provided that the tax payable under the Act is collected by a manufacturer in case of (b) and by such registered dealer in case of (c) and shown separately in the Cash memo or Credit memo or Bill issued to such manufacturer and a declaration in Form E 15 from the buying manufacturer is furnished :

Provided further that goods specified in Part I and Part II of the Schedule to the Act when used as raw material directly in manufacture of goods to be exported out of the territory of India shall not be exigible to tax where a declaration in Form 16 from the buying manufacturer is furnished :

Provided also that if the buying manufacturer contravenes the provisions of this sub-rule, he shall pay the difference in tax or the tax, as the case may be, had he not been entitled to concessional rate of tax or not to pay any tax under the said sub-rule.

Explanation.- For the purpose of this sub-rule the word "manufacturer" shall mean and shall always be deemed to have meant a manufacturer who is registered under the Act"; and

5. Sub-rule (2) respectively of this rule, when such goods-

a) are used as raw material by a manufacturer on its first entry into local area :- or

b) are brought by a registered dealer into any local area and then sold to a manufactuere for use as raw material,

Provided the tax payable under the Act is collected by such registered dealer from the said manufacturer and shown separately in the case memo or the credit memo or Bill of such manufacturer, and the sale is supported by a declaration from the buying manufacturer in Form E 13;

PROVIDED that goods specified in Part I and II of the Schedule to the Act when used as raw material directly in the manufactuere of goods to be exported out of the territory of India shall not be exigible to tax.

Notwithstanding anything contained in this rule, no tax shall be levied under these rules in respect of such goods purchased by a dealer for which the details are furnished in Form-E1 along with the return under sub-rule (1) of rule 10 to prove that such goods have already been subjected to entry tax or that the entry tax has already been paid under the Act for such goods.

Explanation- (a) Goods common to Part I and Part II of the Schedule to the Act shall be taxed at the rate specified in sub-rule (2)

(b) Where the amount of tax collected by a dealer is higher than the tax payable, the dealer shall be liable to pay the amount of tax so collected.