Need expert interpretation

Hi

Section 11 (a)9 :

A dealer who is mandatorily required to register as per section 22 of KVAT Act,2005, if fails to get himself registered, such a dealer is not eligible  for input tax deduction/purchase tax paid u/s 3(2) of this act.

In this case section 24 of this act provides for" suo motu" registration of such dealers and not withstanding such" suo motu" registration, the input tax/purchase tax paid under section 3(2) does not qualify for deduction

Do you mean that a registered dealer purchases goods from a unregistered dealer who is liable to get registered under the act, tax paid on such purchases under U/S 3(2) will be restricted