TMI Blog2018 (2) TMI 1482X X X X Extracts X X X X X X X X Extracts X X X X ..... - 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 wast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is crystalized as under : 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 ? 2. In our view, the controversy is covered by the decision of the Apex Court in the case of State of Maharashtra Vs. Pulg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id to manufacture cotton waste and that the cotton mills were entitled to a set-off of the entire tax paid by them on purchase of raw cotton. It is also held that Rule 41 does not provide for any apportionment of the purchase tax paid or the amount collected from a dealer where a manufacturing process results simultaneously in the production of two commodities. It is held that the rule making au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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