The Bombay Sales Tax Rules, 1959
Chapter VII : Grant of Draw Back, Set off and Refund
R.42AC.Draw-back, set-off or refund of tax paid on purchases on or after the notified day by a Registered dealer holding a certificate of entitlement either under 1 [bst1] [Entry 3, 11 or, as the case may be, 12 in Group E] of the Schedule appended to the Government Notification, Finance Dept. No.2[bst2] [STA.1059/37/Taxation-2, dated the 22nd September 1995] 3[bst3] [xxx] :-In assessing the amount of tax payable by a Registered dealer (hereinafter in this rule referred to as the "claimant dealer") holding a certificate of entitled granted to him under 4[bst4] [Entry 3, 11 or, as the case may be, 12 in Group E] in the schedule appended to the Government Notification, Finance Department No.5[bst5] [STA.1059./37/Taxation-2, dated the 22nd September 1995] 6[bst6] [xxx] the Commissioner shall grant him at the time of assessment for the respective period, in respect of purchases of raw material as defined in the Explanation to Rule 42AA 7[bst7] [and/or machinery] made by the claimant dealer on or after the notified day 8[bst8] [otherwise than against a declaration in Form BC] 9[bst9] [or Form BC-I] 10[bst10] [or Form BD] 11[bst11] [or, as the case may be, Form BE] 6[bst12] [xxx] a draw-back, set-off or as the case may be the refund of the aggregate of the sums determined in accordance with the provisions of clause (a) and (c) of rule 44D :
Provided that, no draw-back, set-off or refund under this rule shall be granted in respect of any purchase to the claimant dealer to whom the certificate of entitlement is granted under the said 3[bst13] [Entry 3, 11 or, as the case may be, 12 in Group E] or under rule 31-B unless he proves, to the satisfaction of the Commissioner that the goods so purchased have been used in 12[bst14] [the manner specified in clause (b) of each of the sub-entries (1), (2) and (3) of the said 3[bst15] [entry 3, 11 or, as the case may be, 12 in Group E] 6[bst16] [xxx] for manufacture of finished products or goods.
13[d17] [Provided further that, no drawback, set-off or refund under this rule shall be granted in respect of purchases of machinery effected by the claimant dealer to whom the Certificate of Entitlement is granted under the Entry 3 in Group E, unless he proves to the satisfaction of the Commissioner that the machinery so purchased is capitalised as Capital Assets and appraised by the appraisal agency, appraisal report of which is approved by SICOM for awarding it the status of "Mega Project" while granting the Eligibility Certificate.]