(1) Where a registered dealer holds the stock of any goods specified in Schedule II on the date of commencement of this Act, he shall furnish the particulars thereof in such form, within such period, in such manner and to such authority as may be prescribed.

(2) Where any goods specified in Schedule II of this Act held in stock by registered dealer on the date of commencement of this Act which have been purchased not earlier than twelve months from such date and are tax paid goods within the meaning of the Act repealed by this Act, and are for sale by him on or after the said date within the State of Chhattisgarh or in the course of inter-State trade or commerce, he shall claim or be allowed in respect of such goods, in such manner and within such period as may be prescribed, an input tax rebate,-

(i) at the rate specified in column (3) of Schedule II, if such goods are sold within the State; and

(ii) at the rate of four percent or at the rate reduced under sub-section (5) of Section 8 of Central Sales Tax Act, 1956 (No. 74 of 1956) or the rate specified in column (3) of Schedule II, whichever is lower, if such goods are sold in the course of inter-State trade or commerce.

(3) (a) where any goods specified in Schedule II of this Act held in stock by a registered dealer, on the date of commencement of this Act, are goods manufactured out of tax paid goods which have been purchased not earlier than twelve months from such date other than those specified in Schedule III consumed or used as raw material or used as packing material or explosives consumed in mining, of any goods specified in Schedule II, for sale in the State of Chhattisgarh or in the course of inter-State trade or commerce on or after the said date, such dealer shall claim or be allowed in such manner and within such period as may be prescribed, an input tax rebate in respect of such tax paid goods, at the rate specified in column (3) of Schedule II or at the rate at which such tax paid goods had borne tax under the Act repealed by this Act, whichever is lower.

(b) where any goods specified in Schedule II other than those specified in Schedule III held in stock on the date of commencement of this Act which have been purchased not earlier than twelve months from such date and are tax paid goods for consumption or use as raw material or for use as packing material or explosives for use in mining of any goods specified in Schedule II, for sale by him in the State of Chhattisgarh or in the course of inter-State trade or commerce, such dealer shall claim or be allowed, in such manner and within such period as may be prescribed, an input tax rebate at the rate specified in column (3) of Schedule II or at the rate at which such tax paid goods had borne tax under the Act repealed by this Act, whichever is lower.

Provided that, no input tax rebate shall be claimed by or be allowed to a registered dealer on the goods held in stock on the date of commencement of the Act, who opts for composition under the provisions of Section 10.

(4) The sale of goods specified in Part III of Schedule II of the Act, which are tax paid goods within the meaning of the Act, repealed by this Act, on or after the said date shall not be liable to tax under the Act.

Explanation - For the purpose of this clause the expressions 'raw material' and 'tax paid goods' shall have the meaning assigned to them in clauses (r) and (x), respectively, of Section 2 of the Act repealed by this Act.