Taxing Authority and Tribunal 21

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(b) there is evidence that the same has not been issued by the selling dealer from whom the goods are purported to have been purchased; (viii) in respect of goods purchased from a dealer whose certificate of registration has been suspended; (ix) in respect of goods used for transfer of stock other than by way of sale outside the State of Tripura; (x) in respect of sales exempt from tax as specified in Schedule III. (xi) in respect of raw materials used in manufacture or processing of goods where the finished products are despatched other than by way of sales: Provided that in respect of transactions falling under item (ix), input tax credit may be allowed on the tax paid in excess of 4% on the raw materials used directly in the manufacture of the finished products. (7) The Commissioner may, after giving sufficient reasons in writing, reject the method adopted by the registered dealer in a year to determine the extent to which goods are used, consumed or supplied or intended to be used, consumed or supplied, in the course of making taxable sales and calculate the amount of input tax credit after giving the registered dealer concerned an opportunity of being heard. 11. Input tax credit exceeding tax liability - (1) If the input tax credit of a registered dealer other than an exporter selling goods outside the territory of India determined under section 10 of this Act for a period exceeds the output tax for that period, the excess credit shall be set off against any outstanding tax, penalty or interest under this Act or CST Act, 1956. (2) The excess input tax credit after adjustment under sub-section (1) may be carried over as an input tax credit to the subsequent period or periods but shall not be carried beyond the end of next financial year. 12. Adjustment of input tax credit :- Where any purchaser, being a registered dealer, has been issued with a credit note or debit note in terms of sub- section (1) of section 17 or if he returns or rejects goods purchased, as a consequence of which, the input tax credit availed by him in any period in respect of which the purchase of goods relates, becomes less or excess, he shall compensate such less credit or excess credit by adjusting the