https://www.taxtmi.com/caselaws?id=261502 Rule 41-D of the Bombay Sales Tax Rules, 1959 allows set-off to a registered manufacturer subject to limited reductions, and it cannot be denied merely because locally sold scrap is excluded from the export ratio. The proviso applies only where the turnover of manufactured goods consists principally of waste or scrap goods; scrap generated in manufacture is not treated as exported goods for recalculating the export percentage. A 4% reduction under Rule 41-D(3)(b) applies only where the purchased items are shown to be capital assets, or parts, components and accessories of such assets. Where the record does not establish that character, consumables used in manufacture cannot be reclassified for a higher set-off reduction. en-us Tue, 23 Jun 2015 00:00:00 +0530 Mon, 07 Mar 2016 11:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261502 Rule 41-D of the Bombay Sales Tax Rules, 1959 allows set-off to a registered manufacturer subject to limited reductions, and it cannot be denied merely because locally sold scrap is excluded from the export ratio. The proviso applies only where the turnover of manufactured goods consists principally of waste or scrap goods; scrap generated in manufacture is not treated as exported goods for recalculating the export percentage. A 4% reduction under Rule 41-D(3)(b) applies only where the purchased items are shown to be capital assets, or parts, components and accessories of such assets. Where the record does not establish that character, consumables used in manufacture cannot be reclassified for a higher set-off reduction. Case-Laws VAT and Sales Tax Tue, 23 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261502