The Jammu and Kashmir General Sales Tax Act, 1962
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4-B. Levy of purchase tax

(1) Every dealer who is liable to pay tax under this Act and who-

(b) Purchase taxable goods from any source in the State and uses them in the State in the manufacture of any other goods and disposes of the manufactured goods in any manner otherwise than by way of sale whether within the State or in the course of interstate trade or commerce or in the course of export out of the territory of the India within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act 1956: or

(c) Purchases taxable goods and exports them; in the circumstances in which no tax is payable under any other provision of this Act, shall be liable to pay tax on the purchase of such goods at the same rate at which it would have been leviable on the sale price of such goods under section 4. Such tax shall be charged and paid at such point as may be specified by the Government.

(2) Notwithstanding anything contained in this Act or the rules made thereunder, if the goods leviable to tax under this section are exported in the same condition in which they were purchased, the tax shall be levied, charged and paid before the goods leave the State and the tax so levied, charged and paid shall be provisional one and the same shall be adjustable towards the tax due from the dealer on such purchases as a result of assessment or re assessment made in accordance with the provisions of this Act and the rules made thereunder on the production of proof regarding the payment thereof in the State;

Provided that in the case of a dealer registered under this Act, provisional tax shall not be charged if the consignment under export through a transporter registered under section 15-B of this Act is accompanied by a declaration in prescribed form signed by the dealer and witnessed by the said transporter containing, inter alia, a certificate that the purchase tax payable shall be paid in accordance with the provisions of section 7 and 8 of this Act. Duplicate copy of the said declaration shall be submitted to the concerned assessing authority before the goods are despatched;

Provided further that nothing contained in the preceding proviso shall apply to a registered dealer who has failed to file the returns due for any quarter or year prior to the commencement of the financial year in which goods are under export and who has failed to deposit the tax payable without any reasonable cause.

(3) At any time, before the goods leave the State.-

(b) any other officer not below the rank of Inspector as may be authorized by the Commissioner at any other place

shall determine the tax or any other amount due and direct the owner, driver or other person incharge of the goods to pay the amount of tax or any other amount due within such time and in such manner as may be prescribed.

(4) The officer directing the payment of tax under sub section (3) may, in the case of failure of the person concerned to pay the tax as directed, require him to furnish adequate security to his satisfaction in the prescribed manner to ensure the payment of tax due and in case such person fails to furnish the security the amount of tax shall, notwithstanding anything contained in section 8, immediately become payable and the provisions of sections 16 and 16-A shall apply to the recovery thereof.

Explanation:- In this section the words 'export' means the taking out of goods from the State to any place outside it otherwise than by way of sale in the course of inter-state trade or commerce, or in the course of export out of the territory of India.

(5) Notwithstanding anything contained in sub-section (1) the Government may by notification, direct that tax shall be charged on the purchase of any commodity at a point to be specified in the said notification provided that no tax shall be chargeable on the sale of such commodity made after the point of purchase at which tax is chargeable