2001 (11) TMI 982

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....April 1, 1990 to March 31, 1991) respectively. 2.. The short question that falls for consideration in this writ is whether the petitioner is entitled to claim set-off under section 8 of the Act for the period in question in respect of the goods in question. Both the assessing authority and the revisionary authority have declined to grant set-off and have thus rejected the petitioner's claim. The petitioner is now in writ to challenge these orders by which their claim for set-off was rejected. 3.. The petitioner is engaged in the business of manufacture and sale of HDPE bags. The case of the petitioner was that during the period in question the petitioner purchased certain raw material for manufacture of finished goods from some new indust....

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....for the State supported the view taken by the two authorities below and prayed for its upholding. 7.. Having heard the learned counsel for the parties and having perused the record of the case, I find no merit in the writ. In my opinion, the view taken by the two authorities below does not call for any interference. In other words, the view taken by the authorities that the petitioner is not entitled to claim any benefit of set-off under section 8 ibid. is legal and proper. 8.. Section 8(1)(a) and rule 20-C which alone are relevant in the case of set-off reads as under: "Section 8. Set-off of tax in respect of tax-paid goods in certain circumstances.-(1) Subject to such restrictions and conditions as may be prescribed a set-off, as provi....

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.... material or used as incidental goods have borne tax at full rate under sub-section (1) of section 6." 9.. Mere perusal of section 8(1)(a) read with rule 20-C would at once show that in order to claim set-off, the registered dealer has to purchase tax-paid goods. He has to then submit the proof in assessment proceedings provided in rule 20-C such as copies of bills, or cash memoranda, that the goods, i.e., raw materials purchased by him have borne tax at full rate or prescribed under section 6(1) ibid. It is only after satisfactory proof tendered by the registered dealer that he has purchased the tax-paid goods, then only he is entitled to claim set-off as specified in section 8(1)(a) ibid. 10.. In the present case admittedly, the petitio....