Every dealer who, in the course of his business, purchases or receives any taxable goods within the State

(i) from a registered dealer, in the circumstances in which no tax under section 11 is payable by that registered dealer on such goods, or

(ii) from any person other than a registered dealer,

shall be liable to pay tax on the purchase price or prevailing market price of such goods, if after such purchase or, as the case may be, receipt, the goods are not sold within the State or in the course of inter-State trade or commerce or in the course of export out of the territory of India, but are



(a) disposed of otherwise; or

(b) consumed or used in the manufacture of goods declared to be exempt from tax under this Act; or

(c) after their use or consumption in the manufacture of goods, such manufactured goods are disposed of otherwise than by way of sale in the State or in the course of inter-State trade or commerce or export out of the territory of India; or

(d) used or consumed otherwise,

and such tax shall be levied at the same rate, at which tax under section 11 would have been levied, on the sale of such goods within the State on the date of such purchase or receipt.