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TMI Blog2010 (5) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... s engaged in the business of manufacture and sale of the iron and steel goods and for the aforesaid purposes it purchases raw material from the other dealers specially M/s. Mahaveer Rolling Mills (P) Ltd. The said dealer has been granted full exemption from the tax under section 4A of the Act. The assessee/opposite party having purchased raw material from the aforesaid dealer was allowed the benefit of set-off on its finished goods. It has been contended by the learned standing counsel that until and unless all the conditions enumerated under section 4BB of the Act are fulfilled, the assessee/opposite party is not entitle to any benefit of set-off and as there is no actual payment of any tax on the raw material purchased, the Tribunal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the value of tax assessable on the purchase of said raw material/packing material from the above dealer from the tax payable by the assessee on the sale of the finished goods. However, the said deduction/set-off was refused to the assessee by the assessing authority on the ground that there is no actual payment of tax on sale/purchase of the raw material. The Tribunal, however, has reversed the same and has allowed the said deduction/set-off to the assessee. In the backdrop of the above facts and circumstances the following question of law has been raised for determination in this revision. "Whether under the facts and circumstances the assessee is entitle to set-off under section 4BB of the Act from the gross turnover of the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax payable separately under this Act or the Central Sales Tax Act, 1956." The submission of the learned standing counsel is that section 4BB stipulates actual payment of tax for the purposes of grant of set-off/ deduction and as there is no actual payment, the Tribunal erred in allowing the said benefit to the assessee. In rebutting the above argument Sri Praveen Kumar, learned counsel appearing for the assessee, has submitted that for the purposes of benefit of section 4BB of the Act the mode and manner of payment of tax is immaterial. What is relevant is the assessment and payment of tax on the purchase/sale of raw material or packing material. The scheme of the Act envisages issuance of eligibility certificate to the dealer granti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 4A of the Act was not legally justified and as such the Tribunal committed no error of law in allowing the said benefit to the assessee by the order impugned. The apex court in the case of State of Punjab v. Perfect Synthetics [2008] 13 VST 550; [2008] 3 SCC 702 while dealing with a similar situation in connection with the Punjab General Sales Tax (Deferment and Exemption) Rules, 1991, has observed that the exemption is given to the dealers and not to the goods and that the assessment of tax of the dealer and deduction of the same from the eligibility amount, amounts to payment of tax. Similar is the situation in the present case. The dealer, M/s. Mahaveer Iron Industry Pvt. Ltd., who has been given full exemption unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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