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2018 (2) TMI 1482 - HC - VAT and Sales TaxSet off of purchase tax - Whether the applicant is entitled to set off under Rule 41A of the Bombay Sales Tax Rules, 1959 in respect of the purchase tax paid under Section 13 of the Bombay Sales Tax Act while purchasing unginned cotton from the unregistered dealer? - Held that: - It is not in dispute that unginned cotton was purchased by the applicant from unregistered dealers by paying purchase tax under Section 13 of the Bombay Sales Tax Act. The cotton so purchased was processed to take out ginned cotton, yarn and ultimate product of cloth, which is a taxfree product. In the process, two products came out namely, (1) cotton waste and (2) cotton yarn waste, which are the commodities at serial no. 22 in Schedule C and made taxable. The applicant was entitled to claim set off under Rule 41A in respect of the tax paid by the applicant under Section 13 while purchasing unginned cotton from the unregistered dealer - application allowed.
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