M.P. Commercial Tax Act, 1994
[1](M. P. Act No. 5 of 1995)
An Act to levy tax on
commerce in the State of Madhya Pradesh.
Be it enacted by the Madhya Pradesh Legislature in the Forty Fifth year of the Republic of India as follows :
Sec.
1 : Short title, extent & commencement
(1) This Act may be called the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994.
(2) It extends to the whole of Madhya Pradesh.
[2](3) It shall come into force on [3]such date as the State Government may by notification in the Official Gazette appoint and different dates may be appointed for different provisions of the Act.
Sec. 2 : Definitions
In this Act, unless there is anything repugnant in the subject or context -
(a) Appellate Deputy Commissioner means an Appellate Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Appellate Deputy Commissioner of Commercial Tax;
(b) Assistant Commissioner means an Assistant Commissioner of Commercial Tax appointed under Section 3;
(c) Business includes -
(a) any trade, commerce, manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and irrespective of the volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern; and
(b) any transaction of sale or purchase of goods in connection with or incidental or ancillary to the trade, commerce, manufacture, adventure or concern referred to in sub-clause (a), that is to say -
(i) goods of the description referred to in sub-section (3) of Section 8 of the Central Sales Tax Act, 1956 (No. 74 of 1956), whether or not they are specified in the registration certificate, if any, of the dealer under the said Act and whether or not they are in their original form or in the form of second hand goods, unserviceable goods, obsolete or discarded goods, mere scrap or waste material; and
(ii) goods which are obtained as waste products or by-products in the course of manufacture or processing of other goods or mining or generation of or distribution of electrical energy or any other form of power;
(d) Commerce means sale or purchase of goods within the meaning of clause (29-A) of Article 366 of the Constitution of India and the expression “Commercial” shall be construed accordingly;
1[(dd) 'Commercial Tax Office' means an office of any officer appointed under section 3 of this Act.]
(e) Commercial Tax Officer means a Commercial Tax Officer appointed under Section 3 and includes an Additional Commercial Tax Officer;
(f) Commissioner means the Commissioner of Commercial Tax appointed under Section 3;
(g) Cooked food includes sweets and sweetmeats, mishri, batasha, chironji, shrikhand, rabadi, doodhpak, prepared tea and prepared coffee but excludes ice-cream, kulfi, ice-candy, non-alcoholic drink containing ice-cream, cakes, pastries, biscuits, chocolates, toffees, lozenges, peppermint drops and mawa;
(h) Dealer means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment or for commission, remuneration or other valuable consideration and includes -
(i) a local authority, a company, an undivided Hindu family or any society (including a co-operative society), club, firm or association which carries on such business;
(ii) a society (including a co-operative society), club, firm or association which buys goods from, or sells, supplies or distributes goods to, its members;
(iii) a commission agent, broker, a del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of the principal;
[4](iv) any person who transfers the right to use any goods for any purpose, (whether or not for a specified period) in the course of business to any other person;
Explanation - (I) Every person who acts as an agent of a non-resident dealer, that is as an agent on behalf of a dealer residing outside the State and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as -
(i) a mercantile agent as defined in the Indian Sale of Goods Act, 1930 (III of 1930); or
(ii) an agent for handling goods or documents of title relating to goods; or
(iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment, and every local branch of a firm or company situated outside the State,
shall be deemed to be a dealer for the purpose of this Act.
(II) The Central or a State Government or any of their departments or offices which, whether or not in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash or for deferred payment, or for commission, remuneration or for other valuable consideration, shall be deemed to be a dealer for the purpose of this Act.
(i) The expression declared goods shall have the meaning assigned to it in the Central Sales Tax Act, 1956 (No.74 of 1956);
(j) Deputy Commissioner means a Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Deputy Commissioner of Commercial Tax;
(k) Goods means all kinds of movable property other than actionable claims, newspapers, stocks, shares, securities or Government stamps and includes all materials, articles and commodities, whether or not to be used in the construction, fitting out, improvement or repair of movable or immovable property, and also includes all growing crops, grass, trees, plants and things attached to, or forming part of the land which are agreed to be severed before the sale or under the contract of sale;
(l) Import means the bringing or causing to be brought of goods into the State of Madhya Pradesh from any place outside the State;
(m) Incidental goods means goods, other than raw material and packing material, referred to in clause (b) of sub-section (3) of Section 8 of the Central Sales Tax Act, 1956 (No.74 of 1956), for use by the registered dealer in the manufacture or processing of goods or in mining of or in the generation or distribution of electrical energy or any other form of power;
(n) Licence means a licence granted under the Act;
(o) Manufacture includes any process or manner of producing, collecting, extracting, preparing or making any goods, but does not include such manufacture or manufacturing process as may be [5]notified.
(p) Place of business means any place where a dealer purchases or sells any goods or stores goods or keeps accounts of his purchases or sales or both and also includes -
(i) the place of business of an agent where a dealer carries on business through an agent;
(ii) any place or building whether any business is carried on therein or not, in which the person carrying on the business, states that any of his books of accounts, documents, stocks or other things, relating to his business are kept;
(q) Purchase price shall comprise of -
(i) the amount payable by a dealer as valuable consideration for the purchase of goods ‘simpliciter’:
Provided that where goods are purchased together with the packing material or container, then notwithstanding anything contained in this Act, the purchase price of such goods shall be inclusive of the price or cost or value of such packing material or container, whether such price or cost or value is paid separately or not as if such packing material or container were the goods purchased;
(ii) transport costs, if any;
(iii) trade commission, if any, by whatever name called;
(iv) forwarding and handling charges, if any;
(v) insurance charges, if any;
(vi) local taxes, if any;
(vii) excise duty, if any, leviable under the Central Excise and Salt Act, 1944 (No.1 of 1944);
(viii) cost of packing, if any; and
(ix) any other charges or costs other than those specified above, if incurred or paid in respect of goods so purchased;
Explanation - For the purpose of this clause “transport cost” includes such expenses as are incurred by the dealer on transportation of goods after taking delivery from the seller;
(r) Raw material means an article used as an ingredient in any manufactured goods, or an article consumed in the process of manufacture and includes fuel and lubricants required for the process of manufacture;
(s) Registered dealer means a dealer registered under this Act;
(t) Sale with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes -
(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
(ii) a transfer of property in goods whether as goods or in some other form, involved in the execution of a works contract;
(iii) a delivery of goods on hire purchase or any system of payment by instalments;
(iv) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
(v) a supply, by way of or as part of any service or in any other manner whatsoever, of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration;
and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of these goods by the person to whom such transfer, delivery or supply is made, [6][but does not include a mortgage, hypothecation, charge or pledge];
[7](vi) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
Explanation - (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (III of 1930), where a sale or purchase of goods takes place in pursuance of a contract of sale, such sale or purchase shall be deemed, for the purposes of this Act to have taken place in the State wherever the contract of sale or purchase might have been made, if the goods are within the State -
(i) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and
(ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation; and
(b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places.
(u) Sale price means the amount payable to a dealer as valuable consideration for the sale of any goods less any sum allowed as cash discount according to ordinary trade practice but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation when such cost is separately charged;
Explanation - Where goods are sold on hire purchase or any system of payment by instalments, the sale price of such goods shall be exclusive of insurance charges, interest and hire charges and such other charges as may be prescribed;
(v) Tax means the tax payable under this Act;
(w) Taxable turnover in relation to any period means that part of a dealer’s turnover for such period which remains after deducting therefrom -
(i) the sale price of goods declared tax free under Section 15 or exempted in whole under Section 17;
(ii) the sale price of goods mentioned in [8][Part II to VI] of Schedule II which are in the nature of tax paid goods in the hands of such dealer;
(iii) the sale price of unginned cotton as specified in Part I of Schedule II and such other goods in the said Part as the State Government may from time to time, by notification, specify, sold to a registered dealer who has declared in the prescribed form that the goods are for resale or for use by him in the manufacture of goods for sale by him;
(iv) the sale price of goods specified in Part I of Schedule II other than those referred to in sub-clause (iii), sold to a registered dealer who has declared in the prescribed form that the goods are for resale by him;
(v) the amount arrived at by applying the following formula :
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rate of tax X aggregate of sale prices |
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100 + rate of tax |
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Provided that no deductions on the basis of the above formula shall be made if the amount by way of tax collected by a registered dealer, in accordance with the provisions of this Act, has been otherwise deducted from the aggregate of sale prices.
Explanation - Where the turnover of a dealer is taxable at different rates, the aforesaid formula shall be applied separately in respect of such part of the turnover liable to a different rate of tax under sub-section (1) of Section 9;
(vi) such other deductions as may be prescribed.
Relevant Rules &
Forms : Rules 26 & 35; Forms 26, 27, 28, 29, 30 & 31
(x) Tax paid goods in relation to a dealer means any goods specified in [9][Part II to VI] of Schedule II which have been purchased by such dealer from a registered dealer inside the State of Madhya Pradesh within the meaning of Section 4 of the Central Sales Tax Act, 1956 (No.74 of 1956) except -
(i) the goods sale whereof by such registered dealer is exempted in whole from payment of tax subject to the condition that such exemption is available only to such registered dealer; and
(ii) the goods manufactured by a registered dealer in his new industrial unit in respect of which such dealer is availing of the facility of exemption from payment of tax in whole under any notification issued under the Act repealed by this Act or under this Act in pursuance of any scheme of the State Government formulated and enforced before or after the commencement of this Act for grant of incentives for the establishment of new industrial units in the State;
(y) Tribunal means tribunal as constituted
under Section 4;
(z) Turnover used in relation to any period means the aggregate of the amount of sale prices received and receivable by a dealer in respect of any sale or supply or distribution of goods made during that period, whether or not the whole or any portion of such turnover is liable to tax but after deducting the amount, if any, refunded by the dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period :
Provided that -
(i) in the case of sale by bonafide agriculturist as defined in clause (e) of sub-section (1) of Section 2 of the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959), of ghee produced by himself; or
(ii) in case of sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold in the form in which it was produced, without being subjected to any physical, chemical or other process for being made fit for consumption save mere dehusking, cleaning, grading or sorting,
the amount of consideration relating to such sales shall be excluded from his turnover;
[10]Explanation - The amount realised or realisable under Section 9-A shall be included in the turnover.
Relevant Rule : Rule
36
(zz) Year means the twelve months ending on the 31st day of March.
Sec. 3 : Taxing Authorities and other Officers
(1) There may be appointed a person to be the Commissioner of Commercial Tax and the following category of officers to assist him, namely :
(a) Additional Commissioner of Commercial Tax;
(b) Appellate Deputy Commissioner or Additional Appellate Deputy Commissioner of Commercial Tax;
(c) Deputy Commissioner or Additional Deputy Commissioner of Commercial Tax;
(d) Assistant Commissioner or Additional Assistant Commissioner of Commercial Tax;
(e) Commercial Tax Officer or Additional Commercial Tax Officer;
(f) Assistant Commercial Tax Officer; and
(g) Inspector of Commercial Tax.
(2) The Commissioner of Commercial Tax and the Additional Commissioner of Commercial Tax shall be appointed by the State Government and the other officer referred to in sub-section (1) shall be appointed by the State Government or such other authority as it may direct.
(3) The Commissioner of Commercial Tax and the Additional Commissioner of Commercial Tax shall exercise all the powers and perform all the duties conferred or imposed on the Commissioner by or under this Act, throughout the State and for this purpose any reference to the Commissioner in this Act, shall be construed as a reference to the Additional Commissioner of Commercial Tax.
(4) Other Officers referred to in sub-section (2) shall, within such areas as the appointing authority may, by general or special order specify, exercise such powers as may be conferred and perform such duties as may be imposed by or under this Act.
Relevant Rule : Rule
3
Sec. 4 : Tribunal
(1) Subject to such rules as may be made in this behalf, the State Government may, by notification, with effect from a date specified therein, constitute Tribunal to exercise the powers and perform the functions conferred on the Tribunal by or under this Act.
(2) Till the date specified in the notification under sub-section (1), the Board of Revenue shall act as Tribunal for the purpose of this Act and on the date aforementioned all proceedings pending before the Board of Revenue, Madhya Pradesh, acting as Tribunal shall stand transferred to the Tribunal constituted under sub-section (1).
(3) Subject to the previous approval of the State Government, the Tribunal may, from time to time, make regulations consistent with the provisions of this Act regulating the procedure and disposal of its business.
Relevant Rule : Rule 4
Sec. 5 : Incidence of taxation
(1) Every dealer whose turnover during a period of twelve months immediately preceding the commencement of this Act exceeds the limit specified in sub-section (5), shall from such commencement be liable to pay tax under this Act in respect of sales or supplies of goods effected in Madhya Pradesh.
(2) Every dealer to whom sub-section (1) does not apply shall be liable to pay tax under this Act in respect of sales or supplies of goods effected in Madhya Pradesh with effect from the date on which his turnover in a year first exceeds the limit specified in sub-section (5) but for the purpose of assessment of the tax only so much of his turnover as is in excess of such limit, shall be taken into consideration.
(3) Every dealer who is liable to pay tax under this Act shall continue to be so liable until the expiry of two consecutive years during each of which his turnover has not exceeded the limits specified in sub-section (5) and till such further period thereafter as may be prescribed and on the expiry of this later period his liability to pay tax shall cease.
(4) Every dealer whose liability to pay tax under this Act has ceased under sub-section (3) shall, if his turnover calculated from the commencement of any year again exceeds the limit specified in sub-section (5), be liable to pay tax under sub-section (2).
(5) For the purpose of this Section, the limit shall be -
(a) in relation to a dealer who imports into the State goods other than lottery tickets of the value of not less than Rs.5, 000/- in a year - Fifty Thousand Rupees;
(b) in relation to a dealer who manufactures in a year any goods (other than such goods as may be [11]notified by the State Government in this behalf) of the value not less than Rs.20, 000 - Fifty Thousand Rupees.
(c) in relation to a dealer being a co-operative society registered under any law for the time being in force relating to co-operative societies dealing exclusively in goods produced or manufactured by such society or its members without the aid of hired labour - One Lac Rupees.
(d) in relation to a dealer who enters into a works contract and in the execution thereof supplies goods (whether as goods or in some other form) - One Lac Rupees.
(e) in relation to a dealer not falling in clause (a), (b), (c) or (d) - One Lac Rupees.
[12](f) in relation to a dealer liable to pay tax under Section 9-A - Fifty Thousand Rupees.
Sec. 6 : Determination of liability to pay tax under this Act
(1) The Commissioner shall, in the prescribed manner, institute proceedings for the purpose of determining the liability of a dealer to pay tax under this Act. Such liability shall be determined by an order and such determination shall be made within a period of twelve months from the date of institution of such proceedings.
(2) Notwithstanding anything contained in sub-section (2) of Section 5, liability of a dealer to pay tax under this Act shall not be determined from a date earlier than five years prior to -
(i) the date of institution of proceedings under sub-section (1); or
(ii) the date of validity of the registration certificate, whichever is earlier.
Relevant Rule &
Form : Rule 69; Form 56 & 57
Sec. 7 : Joint and several liability of a contractor or a sub-contractor
(1) Where a dealer who carries on the business of supplying goods in the course of execution of works contract entered into by him (hereinafter referred to as a contractor) through another such dealer (hereinafter referred to as a sub-contractor) directly or otherwise, and the sub-contractor executes such works contract and each or either of them is liable to pay tax under this Act, then notwithstanding anything contained in this Act, the contractor and the sub-contractor shall be jointly and severally liable to pay tax in respect of [13][transfer of property in goods whether as goods or in some other form involved in the execution of such works contract].
(2) If the contractor proves in the prescribed manner that the tax has been paid by the sub-contractor on the turnover of goods supplied in the course of execution of the works contract, the contractor shall not be liable to pay tax again on the turnover of such goods.
(3) If the sub-contractor proves in the prescribed manner that the tax has actually been paid by the contractor on the turnover of goods supplied in the course of execution of the works contract, the sub-contractor shall not be liable to pay tax again on the turnover of such goods.
(4) Deduction in respect of the turnover of goods supplied in the course of execution of works contract referred to in sub-section (2) or sub-section (3) shall be allowed to the contractor or to the sub-contractor on the production of proof required to be furnished under the said sub-section.
Sec. 8 : Liability of a dealer registered under Central Act No. 74 of 6 to pay tax
(1) A dealer registered under the Central Sales Tax Act, 1956 (No.74 of 1956) who is not liable to pay tax under Section 5 shall nevertheless be liable to pay tax on his sales of any goods in respect of the purchases of which he has furnished a declaration under sub-section (4) of Section 8 of the said Act or on the sales of any goods in the manufacture of which such goods have been used, at the rate specified in sub-section (1) of Section 9.
(2) Every dealer to whom sub-section (1) applies shall for the purposes of Section 26, 27, 32 and 42 be deemed to be a registered dealer.
Sec. 9 : Levy of tax
(1) Subject to provisions of sub-section (2) and sub-section (3), the tax payable by a dealer under this Act shall be levied on the taxable turnover relating to goods specified in Schedule II at the rate mentioned in corresponding entry in column (3) of the said Schedule.
[14](2) Subject to such restrictions and conditions as may be prescribed and to the provisions of sub-clause (iii) of clause (w) of Section 2 -
(a) the tax payable by a registered dealer on the sales of any goods specified in Schedule II except the goods specified in Schedule III, to another registered dealer for use by him inside the State -
(i) as raw material or as incidental goods, in the manufacture or in the processing of goods or in the mining of goods, declared tax free under Section 15 or exempted in whole under Section 17 and sold by him -
(a) in the State of Madhya Pradesh, or
(b) in the course of inter-State trade or commerce, or
(c) in the course of export out of the territory of India, or
(ii) in the generation or distribution of electrical energy or any other form of power;
shall be levied at the concessional rate of four per cent.
(b) (i) the tax payable by a registered dealer on the sale of any goods specified in Schedule II except the goods specified in Schedule III, to another registered dealer holding a recognition certificate under Section 25 for use by him as raw material or as incidental goods in the manufacture or processing or mining of taxable goods other than coal; or
(ii) the tax payable by a registered dealer on the sale of any goods specified in Schedule II to another registered dealer holding a recognition certificate under Section 25 for use by him as raw material or incidental goods in the mining of coal,
for sale by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India, shall be levied at the concessional rate of four per cent :
Provided that when the tax on the sale of such raw material or incidental goods is payable under sub-section (1) at a rate lower than four per cent, the tax payable under clause (a) or clause (b) shall be calculated at such lower rate or at such other lower rate as may be [15]notified by the State Government.
(3) Where any goods purchased by a registered dealer under clause (a) or clause (b) of sub-section (2) are used by him contrary to the purpose specified therein or in violation of the restrictions and conditions prescribed under the said sub-section such registered dealer shall be liable to pay in such manner as may be prescribed, tax or penalty, as the case may be, at the rate equal to the difference of the full rate of tax under sub-section (1) and the concessional rate of tax under sub-section (2), in respect of such goods :
Provided that no tax or penalty shall be imposed on a registered dealer where any goods purchased for use by him as raw material or incidental goods under clause (a) or clause (b) of sub-section (2), are sold by him subject to such restrictions or conditions as may be prescribed, to another registered dealer who is a manufacturer of goods declared tax free under Section 15 or goods exempted in whole under Section 17, or who holds a recognition certificate under Section 25 for the purpose specified in the said clauses.
Explanation - In this Section -
(i) the expression “taxable goods” shall mean the goods liable to tax under this Act;
(ii) the amount payable for violation of restrictions and conditions shall be by way of tax in respect of goods other than declared goods and by way of penalty in respect of declared goods.
Relevant Rules & Forms : Rule 27 & 30; Form 32, 33, 34 & 35
[16]Sec. 9-A : Tax on right to use
Every dealer who transfers the right to use any goods, as the State Government may specify by [17]notification, for any purpose, (whether or not for a specified period) to any person for cash, deferred payment or other valuable consideration in the course of his business, notwithstanding anything contained in the provisions of clause (w) of Section 2, shall on the total amount realised or realisable by him during the year by way of payment in cash or otherwise on such transfer, pay tax at the rate of four per cent on the aggregate of such amount.
[18]Sec. 9-B : Levy of tax in special circumstances
[19](1) Every dealer liable to pay tax under this Act, whose turnover in the year preceding the commencement of the Madhya Pradesh Vanijyik Kar (Sanshodhan) Adhiniyam, 1998 exceeds rupees [20][ten] lacs and every other dealer whose turnover in a year first exceeds rupees3[ten] lacs shall, from the commencement of the aforesaid Act or from the date on which the turnover exceeds rupees 3[ten] lacs, as the case may be, be liable to pay tax on the resale of any goods specified in [21][Part II to VI] of Schedule II at the rate of 5[4 percent in case of declared goods and 8 percent in case of goods other than declared goods] on such part of his turnover in respect of the said goods which remains after deducting therefrom -
(i) ....deleted w.e.f. 13-8-2002......
(ii) sale price of such goods at the hands of the registered dealer from whom they have been purchased;
(iii) the amount arrived at in accordance with the provisions of sub-clause (v) of clause (w) of Section 2]
(2) Every dealer who is liable to pay tax under sub-section (1) shall continue to be so liable until the expiry of two consecutive years during each of which his turnover has not exceeded the limits specified in sub-section (1) and on the expiry of such period his liability to pay tax shall cease.
Sec. 10 : Levy of Purchase tax
(1) Every dealer who in the course of his business purchases any goods specified in Schedule II -
(i) from a registered dealer in the circumstances in which no tax under Section 9 is payable by that registered dealer on the sale price of such goods; or
(ii) from any other person;
shall be liable to pay tax on the purchase price of such goods, if after such purchase 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) sold or disposed of otherwise; or
(b) used or consumed in the manufacture or processing of other goods or used or consumed otherwise;
such tax shall be levied at the same rate at which tax under sub-section (1) of Section 9 would have been levied on the sales of such goods within the State on the date of such purchase.
[22](2) Notwithstanding anything contained in sub-section (1) but subject to such restrictions and conditions as may be prescribed, the tax under sub-section (1) payable by a registered dealer on the goods, other than the goods specified in Schedule-III purchased by him for consumption or use by him as raw material or incidental goods in the manufacture or in the mining of goods for sale by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India or in the generation or distribution of electrical energy or any other form of power, shall be levied at the concessional rate of four per cent :
Provided that when the tax on the purchase of such raw material or incidental goods is payable under sub-section (1) at a rate lower than four per cent, the tax payable under this sub-section shall be calculated at such lower rate or at such other lower rate as may be