2025-VIL-1174-BOM
  1. Home
  2. 2025-VIL-1174-BOM

VAT High Court Cases

Bombay Sales Tax Rules, 1959 - Rule 41D, set-off of furnace oil – Interpretation of sub-rule 3(a) of Rule 41D of the Bombay Sales Tax Rules, 1959 - Whether full set-off is available on purchase of furnace oil used in the manufacture of goods partly sold locally and partly transferred to branches outside the State or the set-off is available after reducing 6% of the purchase price under sub-rule 3(a) - HELD - From the clear language of Rule 41D(3)(a) read with sub-rule 2(iii), the set-off on purchase of furnace oil used in the manufacture of goods partly sold locally and partly transferred to branches outside the State is available after reducing 6% of the purchase price, as provided in sub-rule 3(a) – The Larger Bench of the Sales Tax Tribunal in M/s. Pudumjee Pulp and Paper Mills Ltd. v. State of Maharashtra, interpreted the provisions of Rule 41D(3)(a) and held that furnace oil, being a consumable used in the manufacturing process, has a nexus with the goods dispatched to the branches, and hence the 6% reduction under sub-rule 3(a) is applicable. The expression "goods which are dispatched" in Sub-Rule 3(a) has to be read in the context of Sub-Rule 2(iii) which includes branch transfers - The Court rejected the assessee's contention that furnace oil cannot be equated with "goods which are dispatched" under the Rule, and also found no merit in the arguments regarding the impossibility of apportionment, as the Assessing Officer had already undertaken the pro-rata apportionment between local sales and branch transfers. The Larger Bench decision correctly interpreted the Rule 41D(3)(a) in a strict and contextual manner, in line with the settled principles of statutory interpretation - The questions referred are answered in favor of the Revenue and against the assessee - The reference is answered accordingly
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?