- (1.) CIVIL APPEAL NO. 1153 OF 1998. The assessees are engaged in the manufacture of motor vehicle chassis and spare parts. The assessees claimed certain set off in respect of sales tax payable by them for the period from 1st April, 1982 to 31st March, 1983 invoking the benefit available under Rr. 41-D and 41-E framed under the Bombay Sales Tax Act, 1959 (for short 'the Act'). The set off claimed by the assessees was in terms of Rr. 41-D and 41-E read with R. 44-D framed under S. 42 of the Act which enables a draw back, set off or refund of the whole or any part of the tax in such circumstances and subject to such conditions as may be specified in respect of tax paid or levied or leviable in respect of any earlier sale or purchase of goods under the Act or any earlier law to be granted to the purchasing dealer. Rule 41-D enables draw back, set off or refund of sale paid by the manufacturers in respect of certain purchases made by claimant dealer. It lays down that in assessing the tax payable in respect of any period by a registered dealer who manufactures taxable goods for sale or export, the Commissioner shall, in respect of purchases made by such dealer on or after the notified day of any goods specified in Part II of Schedule C and used by him within the State in the manufacture of taxable goods for sale or in the packing of goods manufactured, grant him a draw back, set off or, as the case may be, a refund of the aggregate of the sums determined in accordance with R. 44-D. The concept of export is defined to include dispatches made by the claimant to his own place of business or to his agent outside the State where the claimant dealer produces certificate in Form 31-C issued declaring that the goods would in fact be sold by him or would be used by him in the manufacture of goods which would in fact be sold by him and that he, his manager or, as the case may be, his agent is registered under the Central Sales Tax Act in respect of that place of business. The aggregate of the sum referred to in sub-rule (1) shall be reduced by 5 per cent. of the purchase price representing the sums in respect of the goods which are dispatched in the manner referred to in Cl. (iii) of sub-rule (2), provided that the aggregate of such sum shall be reduced by certain percentage of such purchase price. Rule 41-E provides that in assessing the amount of tax payable in respect of any period by a registered dealer the Commissioner shall in respect of the purchases made by the claimant dealer on or after the notified day of goods specified in any entry of Schedule B which were used by him in the manufacture of goods specified in the same entry of Schedule B for sale or export, grant him a draw back, set off or, as the case may be, a refund of the aggregate of the sums determined in accordance with the provisions of R. 44-D.
(2.) By S. 26 of the Maharashtra Sales Tax Laws (Levy, Amendment and Repeal) Act, 1989 during the period from 1st July, 1981 to 31st March, 1984, R. 41-E as it existed before 1-4-1984 was deemed to have been re-enacted in the same form as it then existed but with certain modifications. The amended version of R. 41-E by the 1989 Act reads as follows : "41-E. Draw back, set off etc. of tax paid by a manufacturer of goods specified in Schedule B.- In assessing the amount of tax payable in respect of any period of any 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 on or after the notified day, of goods specified in any entry of Schedule B which were used by him in the manufacture of goods (not being waste goods or scrap goods or by-products) specified in the same entry of Schedule B, for sale or export, grant him a draw back, set off or, as the case may be, a refund of the aggregate of the sums determined in accordance with the provisions of R. 44-D."
(3.) Section 27 of the said Amendment Act of 1989 further amended the Rule 41-E as follows :- "27. Amendment of Rule 41-E of Bombay Sales Tax Rules, 1959.- "In the existing Rule 41-E of the Bombay Sales Tax Rules, 1959, during the period commencing from 1st April, 1984, and ending on 31st March, 1988, after the words manufacture of goods" the brackets and words "(not being waste goods or scrap goods or by-products)" shall be deemed to have been inserted.";