Special Rates of Tax on Certain Sales

Special rates of tax on certain sales (1) Notwithstanding anything contained in section 3A or section 3D or section 3F, and subject to the provisions of sub-section (2) and such conditions and restrictions, if any, as maybe specified by the State Government, by notification, tax on the turnover of sales of goods to a department of the Central Government or of a State Government or to a corporation or undertaking, established or constituted by or under a Central Act or an Uttar Pradesh Act, or to a government company as defined in section 617 of the Companies Act, 1956, not being a Nagar Nigam, Nagar Palika Parishad, Zila Panchayat, Nagar Panchayat, Cantonment Board, a university or an educational institution or an institution managed for the time being by an authorised controller, shall, if the dealer furnishes to the assessing authority a certificate obtained from such department or a declaration obtained from such Corporation, Undertaking or Company in such form and manner and within such period as maybe prescribed, be levied and paid at the rate for the time being specified in sub-section (1) of section 8 of the Central Sales Tax Act, 1956, or at such rate as the State Government may, by notification, specify in relation to any sales, unless the goods are taxable under any other section of this Act, at a rate lower than the said rate.
[Provided that in case of sale to a Corporation, undertaking or company of the Central or the State Government, the dealer shall not be required to furnish declaration under this sub-section, if he furnishes to the assessing authority copy of the order for supply of goods, proof of delivery of goods to such Corporation, undertaking or company and the proof of payment having been received through crossed cheque or Bank draft.]
(2) The provisions of sub-section (1) shall not apply to sale of any goods which are purchased by such department, corporation, undertaking or company for resale or for use in the manufacture or packing of any goods, other than electrical energy railway diesel locomotice engine for sale, or if such department, corporation, undertaking or company has no office or establishment situated in Uttar Pradesh.
(3) If after purchasing the goods against the certificate or declaration referred to in sub-section (1), any such department, corporation, undertaking or company uses or disposes of the same in the manner mentioned in sub-section (2), such department, corporation, undertaking or company shall, without prejudice to any other action, including the imposition of penalty that may be taken under this Act, be liable to pay any amount equal to the difference of tax calculated at the rate otherwise applicable to the purchase or sale of such goods under this Act and that the rate applicable under sub-section (1).
Explanation: For the removal of doubt, it is clarified that the provisions of this section as it stood on May 13,1994 shall not apply during the period between May 14, 1994 and September 27,1994.