The Bombay Sales Tax Rules, 1959
Chapter VII : Grant of Draw Back, Set off and Refund
1[bst1] [R.41F.Draw-back, set-off, etc., of tax paid by a manufacturer of certain goods].-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 by the claimant dealer of goods
specified in column 2 of the Statement below, which are 2[bst2] [used by him within the state] in the manufacture of goods specified against them in column 3 of the said Statement, for sale by him or for export by him, grant him a draw-back, set-off or as the case may be a refund of the aggregate of the sum determined in accordance with the provisions of rule 44D.]
3[bst3] [Explanation,-For the purposes of this rule the expression "export" shall have the same meaning as assigned to it in sub-rule (2) of rule 41D."
4[bst4] [STATEMENT w.e.f. 1-1-2000
S.N.
Goods Purchased
Goods Manufactured
(1)
(2)
(3)
5[bst5] [(1)]
All the goods (excluding furnace oil covered by entry 76 of Part II of Schedule C and those which are treated as capital assets and parts, components and accessories of such (capital assets) purchased on or after 1st April 1998 and which are used by the claimant dealer within the State in the manufacture of goods specified in column 3, which have in fact been sold or used in the packing of the goods so manufactured.
(a) Cotton thread covered by entry 14 of Part I of Schedule C.
(b) Goods covered by entry 23 of Part I of Schedule C.
7[bst6] [(c) Goods covered by entry 100A of Part II of Schedule C.]
(d) Goods covered by entry 10 in Part I of Schedule C and by entries 97 and 98 in Part II of Schedule.
8[bst7] [(e) Goods covered by entry 100C of Part II of Schedule C.
(f) Goods covered by entries 5, 7 and 9 in Part I of Schedule C.]
9[bst8] [(g) Timber covered by entry 63 of PART II of Schedule C.
10[bst9] [(h) Unbranded utensils made from nonferrous metal, covered by entry 24 of Part II of Schedule C.]
6[bst10] [(2)
Fertilisers
Mixed fertiliser
2.
All the goods (excluding those which are treated as capital assets and parts, components and accessories of such capital assets) purchased on or after the 1st October, 1995 and which are used by claimant dealer within the State in the manufacture of goods specified in column 3, which have, in fact, been sold or used in the packing of the goods so manufactured.
(a) Cotton yarn covered by entry 3 of Schedule B and cotton yarn waste covered by entry 13 of Part I of Schedule C.
(b) Such oils and Oil Cakes not being deoiled Cakes which are notified by the State Government in the Official Gazette for the purposes of this rule.
(c) Hydrogenated vegetable oil including Vanaspati covered by entry 9 of Part I of Schedule C.
(d) Cotton thread covered by entry 14 of Part I Schedule C.
(e) Goods covered by entry 23 of Part I of Schedule C.
(f) Cast iron castings covered by entry 25 of Part I of Schedule C.
(f-1)Household utensils made of non-ferrous metal covered by entry 24 of Part I of Schedule C.
(g) Drugs covered by entry 37, and sub entry (2) of entry 38 of Part II of Schedule C.
(h) Wooden furniture covered by entry 39 of Part II Schedule C.
(i) Hosiery goods covered by entry 44 of Part II Schedule C.
(j) Cement products covered by entry 60 and entry 65 of Part II of Schedule C.
(k) Timber covered by entry 63 of Part II of Schedule C.
(l) Goods made primarily from rubber covered by entry 91 of Part II or Schedule C.
(m) Goods made primarily from plastic covered by any entry of Schedule C.
(n) goods covered by the entry 10 in Part I of Schedule C and by entries 97 and 98 of Part II of Schedule C.
(o) Bicycles covered by entry 101 of Part II of Schedule C.
(o-1)Diesel generating sets covered by entry 135 of part II of Schedule C.
(p) Air-conditioning plants, air-conditioners and air-coolers covered by entry 148 of Part II of Schedule C.
(q) Refrigeration plants and all kinds of refrigerating appliances and equipments including refrigerators, freezers, mechanical water coolers, bottle coolers, walk-in-coolers covered by entry 149 of Part II of Schedule C.
Explanation,-The expression "Capital Assets" used in the Statement has the same meaning as assigned to it in the Income Tax Act, 1961.
1[bst1] ["Provided that where the process of manufacturing results in the production of goods specified in column 3 of the above statements as well as goods other than those specified in column 3 of the said statement, then such drawback, set-off or as the case may be, the refund shall be apportioned as between goods specified in column 3 of the said statement and goods other than those specified in column 3 of the said statement on the basis of the sale prices of such manufactured goods and shall be allowed only to the extent that it pertains to the manufactured goods specified in column 3 of the statement."]
7[bst2] [Provided further that, where the process of manufacturing results in the production of,-
(a) scrap, whether or not covered by the entry 23 of Part I of Schedule C appended to the Act, or as the case may be, entry 100C of Part II of Schedule C appended to the Act, and
(b) goods covered by the entry 23 of Part I or entry 100C of Part II of Schedule C appended to the Act, (not being scrap specified n either of the two entries),
then such draw-back, set-off, or as the case may be, the refund shall be apportioned between the scrap specified in clause (a) and goods other than scrap specified in clause (b) on the basis of sale price of such manufactured goods and shall be allowed only to the extent that it pertains to the goods specified in clause (b)].
9[bst3] [Provided also that, where the process of manufacturing results in the production of,-
(a) scrap, whether or not covered by the entry 23 in Part I of the Schedule C or, as the case may be, entry 100C in Part II of the Schedule C, and
(b) goods covered by the entry 23 in Part I of the Schedule C or, as the case may be, entry 100C in Part II of the Schedule C (not being scrap specified in either of the two entries),
then such draw-back, set-off, or as the case may be, the refund shall be apportioned between the clauses (a) and (b) above on the basis of sale price of such manufactured goods and shall be allowed only to the extent that it pertains to the goods specified in clause (b) above].
2[bst4] [8[bst5] [Provided also that] if the goods specified in column 3 are dispatched in the manner referred to in clause (iii) of sub-rule (2) of rule 41D, then the aggregate of the sums allowed to the extent specified in the first proviso shall be further reduced by six per cent of the purchase price representing the sums in respect of the goods so despatched."]
5[bst6] ["Provided also that, where the process of manufacturing results in the production of goods specified in column (3) of the Statement which are taxable as well as other than taxable, then such drawback, set-off or, as the case may be, refund shall be apportioned between the goods which are taxable and other than taxable on the basis of sales prices of such manufactured goods and shall be allowed only to the extent that it pertains to the taxable manufactured goods specified in column (3) of the said Statement and for the purposes of this proviso, goods other than taxable goods shall include goods, the sales or, as the case may be, purchases of which are exempted from payment of sales tax or, as the case may be, purchase tax by virtue of any entry in the notification issued under section 41 of the Act."]
3[bst7] ["Explanation.-For the purpose of the second proviso the expression 'purchase price representing the sums' shall have the meaning as assigned to it in the explanation II to sub-rule (3) of rule 41-D".]