https://www.taxtmi.com/caselaws?id=332349 Rule 42 of the Gujarat Sales Tax Rules allowed set-off to a manufacturer where the purchased goods were used in producing goods covered by Schedule-IIA, and the proviso removed the prohibition on otherwise prohibited goods for entries 26, 39 and 43. Spare parts and accessories of electric motors, though treated as prohibited goods, qualified for set-off because they were used in manufacturing electric motors falling within entry 26. The separate condition requiring sale of the manufactured goods in the State or in inter-State trade operated independently and was satisfied. Use of the motors in pump sets did not defeat the claim. The dealer was therefore entitled to set-off, and the Revenue's challenge failed. en-us Thu, 01 Sep 2016 00:00:00 +0530 Thu, 15 Sep 2016 10:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332349 Rule 42 of the Gujarat Sales Tax Rules allowed set-off to a manufacturer where the purchased goods were used in producing goods covered by Schedule-IIA, and the proviso removed the prohibition on otherwise prohibited goods for entries 26, 39 and 43. Spare parts and accessories of electric motors, though treated as prohibited goods, qualified for set-off because they were used in manufacturing electric motors falling within entry 26. The separate condition requiring sale of the manufactured goods in the State or in inter-State trade operated independently and was satisfied. Use of the motors in pump sets did not defeat the claim. The dealer was therefore entitled to set-off, and the Revenue's challenge failed. Case-Laws VAT and Sales Tax Thu, 01 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332349