Input tax:

Input tax in relation to a registered dealer means the tax charged under this act by the selling dealer to such dealer on the sale to him of any goods for resale or use in manufacturing or processing of goods for sale butshall not include tax paid in respect of goods specified in Schedule VI used or disposed of in the circumstances mentioned against such goods: Provided that where the goods purchased in the State are used or disposed of partly in the circumstances mentioned in Schedule-TV and partly otherwise, the input tax in respect of such goods shall be computed pro rate: Provided further that if input tax in respect of any goods purchased in the State has been availed of but such goods are subsequently used or disposed of in the circumstances mentioned in Schedule —VI, the input tax in respect of such goods shall be reversed.