The Bombay Sales Tax Rules, 1959
Chapter VII : Grant of Draw Back, Set off and Refund
R.42A.Draw back, set-off or refund of tax paid on purchases of goods sold to certain classes of dealers--
In assessing the amount of the tax payable by a registered dealer (hereinafter in this rule referred to as "the claimant dealer") for any period, the Commissioner shall grant him a draw back, set-off or refund, as the case may be, of an amount equal to the sum recovered from him during that period by other registered dealers by way of sales tax 3[bst3] [* * *] on the purchases of any goods made by him from such registered dealers, if--
1.The goods so purchased have been resold by the claimant dealer.
4[bst4] ["2 The said resale conforms to the description given in column 2 against entries at serial number 5[bst5] ["M-1, G-1, M-3, M-3, E-2, H-8, H-8, 334] in the Schedule to the Government Notification, Finance Department No.5[bst6] ["STA.1059/37/Taxation-2, dated the 22nd September 1995"] issued under section 41.
3.The claimant dealer could have claimed exemption from payment of sales tax under the entry at serial number 6[bst7] [M-1[334] or could have claimed partial exemption from payment of tax under entry 7[bst8] [G-1, M-3, M-3, E-2, H-8, H-8] in the said Schedule by virtue of the conditions specified in column 4 of the Schedule being satisfied, had the sale effected by him been liable to tax but for the exemption from tax or deduction from the taxable turnover admissible to him in respect of this sale under other provisions of the Act; and"]
4.The claimant dealer produces a certificate in Form 31-B issued by the dealer to whom he has resold the said goods or as the case may be, a certificate in 8[bst9] [Form-G] appended to the Govt. Notification, Finance Department, No.9[bst10] ["STA.1059/37/Taxation-2, dated the 22nd September 1995"] signed by a Master of ship or Commander of Aircraft bound for any place outside India .10[bst11] [or produces a declaration in 11[bst12] [Form-M] appended to the said notification furnished by the manufacturer or as the case may be, in 12[bst13] [Form-M] appended to said notification by the processor, to whom he has resold the said goods] or produces, a declaration in 13[bst14] [Form-E,] appended to the said notification furnished by the electrical undertaking to whom he has resold the said goods or produces a declaration in 14[bst15] [Form-K,] appended to the said notification, furnished by the Ministry of Defence, or, as the case may be, by the officer authorised by that Ministry to whom he has resold the said goods or produces a declaration in 15[bst16] [Form-H,] appended to the said notification, furnished by an authorised officer of the central Government or any State Government to whom he has resold the said goods or produces a declaration in 16[bst17] [Form-H] appended to the said notification, furnished by the Food Corporation of India or by an officer authorised by the said Corporation in this behalf, to whom he has resold the said goods 9[or produces a Declaration in Form AW appended to the said notification furnished by an electronic industrial unit of Santacruz Electronics Export Processing Zones, Bombay which is certified by the Commissioner for the purpose of entry 109 of the said schedule, to whom he has resold the said goods 17[bst18] [or produce a declaration in 18[bst19] [Form-H] appended to the said notification furnished by the purchasing officer-in-charge of the Canteen Stores Department or the Indian Naval Canteen Service, to whom he has resold the said goods".] 19[bst20] ["or produces a declaration in Form CW appended to the said Notification, furnished by the Below Poverty Line Women's Co-operative, Village Chandoli, Taluka Khed, District Pune, to whom he has resold the said goods."]
Provided that, where the resale of the said goods by the claimant dealer conforms to the description given in column 2 against entry at serial number 20[bst21] [G-1] the amount of draw-back, set-off or refund admissible under this rule shall be restricted to the excess over two per cent of the sale price of the resale of the said goods by the claimant dealer.
1[bst1] [Provided further that, where resale of the said goods by the claimant dealer conforms to the description given in column 2 against entry at serial number 2[bst2] [M-3 or M-3,] the amount of drawback, set-off or refund admissible under this rule shall be available for resales out of purchases made on or after the 1st July 1981 and shall be restricted to the exceess over six percent of the sale price of the resale of the goods by the claimant dealer, where the resale is made on or after the 1st July 1981:]
3[bst3] [Provided also that where the resale of the said goods by the claimant dealer conforms to the description given in column 2 against entry at serial number 4[bst4] [E-2] the amount of drawback, set off or refund admissible under this rule shall be restricted to the excess over two percent of the sale price of the resale of the said goods by the claimant dealer, where the resale is made between the 3rd February 1966 and the 30th June 1966 (both days inclusive),and to the excess over three percent of such sale price where the resale is made between the 25th July 1966 and the 30th June 1975 (both days inclusive) and to the excess over four percent of such sale price where the resale is made between the 1st July 1975 and the 2nd March 1987 (both days inclusive) and to the excess over six percent of such sale price where the resale is made on or after the 26th March 1987.]
Provided also that, where the resale of the goods by the claimant dealer conforms to the description given in column 2 against entry at serial number 5[bst5] [H-8 or H-8,] the amount of drawback, set-off or refund admissible under this rule shall be restricted to the excess over three percent of the sale price of the resale of the said goods by the claimant dealer 6[bst6] [effected upto the 30th June 1975 and to the excess over four percent of the sale price of resale of the said goods by the claimant dealer effected on or after the 1st July, 1975].
Comments :-Throughout the principal rules, for the letters, figures, brackets and words "STA-1059 (iii) G-1, dated the 28th December 1959" wherever they occur, the letters, figures and words, "STA.1059/37/Taxation-2, dated the 22nd September 1995" shall be substituted with effect from the 1st October 1995; and
(i)for the serial numbers of the entries of the Schedule to the Government Notification, Finance Department, No.STA.1059 (iii)-G-1, dated the 28th December 1959 shown in column (2) of the Table below, the corresponding entry numbers of the Government Notification, Finance Department, No.STA.1959/37/Taxation-2, dated the 22nd September 1995 shown in column (3) of the said Table against the respective serial numbers shall be substituted with effect from the 1st October 1995;
TABLE :
| No | Serial Number | Entery Number |
| (1) | (2) | (3) |
| 1 | 15 | M-1 |
| 2 | 32 | G-1 |
| 3 | 39(i) | M-3 |
| 4 | 39(ii) | M-3 |
| 5 | 47 | E-2 |
| 6 | 59 | H-8 |
| 7 | 70 | H-8 |
| 8 | 94 | K-1 |
| 9 | 97 | K-2 |
| 10 | 136 | E-2 |
| 11 | 223 | A-33 |
(ii) for the word, letter and figures denoting the Forms appended to the Government Notification, Finance Department, No.STA.1059-(iii) G-1, dated the 28th December 1959 shown in column (2) of the Table below, the corresponding words and letters denoting the Forms appended to Government Notification, Finance Department, No.STA.1095/37/Taxation-2, dated 22nd September 1995 as shown in column (3) of the said Table against the respective words, letters and figures shall be substituted with effect from the 1st October 1995;
TABLE :
| No | From | From |
| 1 | 2 | 3 |
| 1 | Form - R | Form - G |
| 2 | Form - T | Form - M |
| 3 | Form - TT | Form - M |
| 4 | Form - AA | Form - E |
| 5 | Form - AF | Form - H |
| 6 | Form - AI | Form - H |
| 7 | Form - AJ | Form - H |
| 8 | Form - AQ | Form - K |