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2015 (1) TMI 591 - HC - VAT and Sales TaxAdmissibility of set off - Whether the Tribunal was justified in holding that set off under Rule 42-H of the Bombay Sales Tax Rules, 1959 is not admissible if the goods sold are covered by a declaration in Form N-14B – Held that:- The Tribunal rightly noted that the Assessee before it had effected sale of Schedule 'C' goods against Form 'N14B' - That Form is prescribed in relation to the goods which have been procured from another dealer who sold them in the course of export, out of the territory of India within the meaning of Section 5(3) of the CST - That Form is prescribed by virtue of Rule 21A - That is a Form of a certificate to be furnished by a dealer in support of his claim for exemption in respect of sales deemed to be in the course of export, out of the territory of India - a dealer may make a claim that he is not liable to pay tax under the BST in respect of his sale of goods on the ground that the sale of such goods is a sale in the course of export of the goods out of the territory of India within the meaning of SubSection (3) of Section 5 of the CST - He can therefore produce a certificate in the Form along with evidence of export of such goods and claim exemption in respect of the liability to pay the Sales Tax - the sales and purchases which are not liable to tax under the BST by virtue of Section 75 have been rightly excluded or taken out of the purview of Rule 42-H and that is the only interpretation which can be placed on the said Rule - If one peruses Section 5 and particularly Sub Section (1) and SubSection (3) of the CST together with Section 75 of the BST, Rule 21A of the Bombay Sales Tax Rules, Form N-14B harmoniously and together, it would be apparent that what is not within the purview of the BST can never be brought in for the purposes of claiming a deduction or set-off under Rule 42H. In respect of the amount of tax payable by registered dealer on his sales or goods on which deduction under Section 8(1) has been not allowed is a case of the registered dealer to whom the BST was applicable - If it was applicable because the sale was not a sale which was beyond the purview or reach of the BST, it is to enable such a dealer to claim the drawback, set off etc. on goods purchased by him and liable for value added Sales Tax that Rule 42H was worded accordingly - once again the explanation appears in Rule 42H and after 1st April, 1999 is because a similar case of dealer holding a trademark or patent was before the legislature – there is no reason to interfere in the order of the Tribunal – Decided against petitioner assessee.
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