The Bombay Sales Tax Rules, 1959
Chapter VII : Grant of Draw Back, Set off and Refund
R.43AB. Draw back, set-off etc. of tax to exporters of certain classes of goods--
(1)In assessing the amount of tax, payable in respect of any period by a Registered dealer (hereinafter in this rule referred to as "the claimant dealer") the Commissioner shall, in respect of the purchases made 1[bst1] [before the notified day] by claimant dealer from another dealer of any goods which are used by the claimant dealer within the State in the manufacture of goods specified in sub-rule (2) or in the packing of the goods so manufactured the said manufactured goods being sold in the course of the export of the goods out of the territory of India by the claimant dealer or by another dealer to whom the claimant dealer sells the said manufactured goods, grant to the claimant dealer, subject to the provisions of sub-rule (3) a draw-back, set-off or, as the case may be, a refund of the aggregate of the following sums that is to say--
(a)a sum recovered from the claimant dealer by other Registered dealer by way of sales tax, general sales tax or both, on the purchase made by the claimant dealer from such Registered dealers;
(b)a sum paid or payable as purchase tax under sec. 13 or 14;
(c)a sum calculated in accordance with the formula given in the table hereunder on the purchase price of any goods specified in Schedules B, C, D, or E purchased by the claimant dealer from any other Registered dealer, otherwise than against a certificate under section 11 or 12, on the sale of which such Registered dealer has not charged tax (other than retail sales tax) separately and in respect of which the claimant dealer proves to the satisfaction of the Commissioner that the tax leviable under the Act has been paid or has become payable on an earlier transaction in the same goods and produces on demand a certificate in Form 31 issued by the aforesaid Registered dealer stating interalia that the sale of the goods has been or will be included in the turnover of sales on which tax leviable under the Act, will, if payable by him be paid before furnishing the relevant return :-
TABLE
The Formula shall be as follows :-
9P/10 X R/100+R
'P' means the purchase price of the goods and 'R' means the rate of tax (other than retail sales tax) applicable to the sale of the goods :
Provided that, in the case of goods specified in Schedule E for the purposes of clause (c), 'R' means the rate of sales tax, or general sales
tax, or as the case may be both, not charged separately on the sale price, and 'R' means the rate of sales tax for the purposes of clause (d):
Provided further that the Commissioner may reduce the amount calculated in accordance with the formula given above to an amount not less than one-third thereof, if after giving the claimant dealer a reasonable opportunity of being heard, the Commissioner is satisfied that the average price of similar goods sold by manufacturers, producers or importers thereof was less than the purchase price paid by the dealer by an amount more than 10 percent, of such purchase price or that there is any other adequate reason to be recorded in writing for so reducing the amount.
(d) a sum calculated in accordance with the formula given above on the purchase price of any goods specified in Schedule E purchased by the claimant dealer from any other Registered dealer (hereinafter in this clause referred to as "the said Registered dealer") on payment of general sales tax 2[bst2] [or on furnishing a declaration in 3[bst3] [Form-M], appended to Government Notification, Finance Department No."3[bst4] [STA.1059/37/Taxation-2, dated the 22nd September 1995"], as the case may be) if the claimant dealer shows to the satisfaction of the Commissioner :
(i) that the said goods were resold by the said Registered dealer to him after purchasing them from another Registered dealer on or after the 1st day of January 1960.
(ii) that the sales tax leviable under section 10 has been paid or has become payable on an earlier transaction in respect of the same goods,
(iii) that the said Registered dealer has not separately recovered sales tax in respect of the said goods from the claimant dealer and produces a certificate 3[bst5] [in Form 31 or 31A as the case may be, in respect of purchases made on payment of General Sales Tax or on furnishing a declaration in 2[Form-M] aforesaid as the case may be) issues by the said Registered dealer stating inter alia that the sale is or will be included by him in his turnover of sales :
Provided that, the Commissioner may reduce the amount calculated (in accordance with the formula given above) to an amount not less than one third thereof, if, after giving the claimant dealer a reasonable opportunity of being heard, the Commissioner is satisfied that the average price of similar goods sold by manufacturers, producers, or importers thereof was less than the purchase price paid by the claimant dealer by an amount more than 10 percent of such purchase price or that there is any other adequate reason to be recorded in writing for so reducing the amount.
(2)The goods in respect of which a draw-back, set-off or as the case may be, a refund shall be granted under sub-rule (1) shall be as follows, namely :-
(a) cotton fabrics as defined in the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter in this rule referred to as "the First Schedule")_
(b) Rayon or artificial silk fabrics as defined in the First Schedule :
(c) Woollen fabrics as defined in the First Schedule
(d) Sugar as defined in the First Schedule.
(3)No draw-back, set-off or as the case may be, refund under sub-rule (1) shall be granted to the claimant dealer in respect of export of the manufactured goods by another dealer to whom the goods were sold by the claimant dealer unless the claimant dealer produces before the Commissioner certificate in Form 31E issued by the aforesaid exporting dealer declaring inter-alia that the goods sold to him by the claimant dealer have actually been resold by him in the course of export out of the territory of India.