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1992 (7) TMI 292 - SC - VAT and Sales TaxWhether the Tribunal was correct in law in holding that for the purpose of reducing set- off under clause (iii) of the proviso to the explanation to rule 41 of the Bombay Sales Tax Rules, 1959, one per cent, should be calculated not on the entire sale price of the goods despatched by the appellants to their branches, but only on that part of the sale price of the goods sold outside the State which is attributable to the locally purchased raw material on which the appellants were claiming set-off? Whether the Tribunal was correct in law in holding that for the purpose of reducing set- off under clause (iii) of the proviso to the explanation to rule 41 and clause (y) of the proviso to the explanation to rule 41-A of the Bombay Sales Tax Rules, 1959, one per cent, should be calculated not on the entire sale price of the goods despatched by the appellants to their branches, but only on the part of the sale price of the goods sold outside the State which is attributable to the locally purchased raw material on which the appellants were claiming set-off? Held that:- Appeal dismissed. Failure to understand how a valid grievance can be made in respect of such deduction when the very extension of the benefit of set-off is itself a boon or a concession. It was open to the rule-making authority to provide for a small abridgement or curtailment while extending a concession. Viewed from this angle, the argument that providing for such deduction amounts to levy of tax either on purchases of raw material effected outside the State or on sale of manufactured goods effected outside the State of Maharashtra appears to be beside the point and is unacceptable. So is the argument about apportioning the sale price with reference to the proportion in which raw material was purchased within and outside the State.
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