The Bombay Sales Tax Rules, 1959
Chapter VII : Grant of Draw Back, Set off and Refund
R.46. Further conditions in respect of adjustment of draw-back, set-off, etc. in certain circumstances--
(1)Where a notice under sub-section (4) of section 38 has been issued for the payment of any sum by a dealer who is entitled to a draw-back, set-off or refund under these Rules, the Commissioner shall first apply the amount so due by way of draw-back, set-off or refund towards the recovery of the amount in respect of which such notice has been issued and shall thereafter grant the draw-back, set-off or refund of the balance, if any, and he may also direct that the dealer shall not adjust any such draw-back, set-off, or refund against the tax payable by him when furnishing his returns as long as any such amount in respect of which a notice as aforesaid has been issued remains unpaid.
(2)Where the claimant dealer is unable to identify the goods purchased with the goods re-sold, or with the goods used in the manufacture of goods sold or in the packing of goods manufactured and sold, it shall be presumed that the goods so purchased have been resold or used in the manufacture of goods for sale or in the packing thereof in the chronological order in which they were acquired whether before or after appointed day.