(1)The set off under clause (a) of sub-section (1) of Section 13 shall be granted subject to the following restrictions and conditions, namely :(i)the tax paid goods consumed or used as raw material or used as incidental goods, as the case may be, are specified as raw material or incidental goods in his registration certificate;(ii)the goods manufactured after consuming or using the tax paid goods as raw material are sold by the registered dealer in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India; and(iii)the registered dealer claiming the set off produces at the time of assessment copies of the relevant bills or cash memoranda obtained from the selling registered dealer in support of the fact that the goods purchased by him and consumed or used as raw material or used as incidental goods have borne tax at full rate under sub-section (1) of Section 9.(2)(a)Where a registered dealer has purchased any tax paid goods from another such dealer for consumption or use as raw material or for use as incidental goods and has consumed or used them for the said purpose, he shall be eligible to a set off, in respect of-(i)the price at which such goods were sold by such selling registered dealer exclusive of tax, if the goods so purchased have borne tax at the hands of the selling registered dealer; or(ii)the price on which such goods had borne tax at the hands of the first selling registered dealer exclusive of tax if the goods are tax paid at the hands of the last selling registered dealer and the purchasing registered dealer claiming the set off furnishes evidence with regard to the quantum of such price at the hands of the first selling registered dealer, who had paid the tax on the sale of such goods; or(iii)75 per cent of the price at which such goods were sold by the last selling registered dealer, if such goods were tax paid in his hands and the purchasing registered dealer claiming the set off is not able to furnish evidence with regard to the quantum of such price at the hands of the first selling registered dealer who had paid the tax on the sale of such goods.(b)A registered dealer entitled to a set off under sub-clause (i) or sub-clause (ii) of clause (b) of sub-section (1) of Section 13 shall be eligible to such set off in respect of-(i)the price on which such goods had borne tax at the hands of the first selling registered dealer exclusive of tax, if the goods are tax paid at the hands of the registered dealer selling the goods to the registered dealer claiming the set off and the registered dealer claiming the set off furnishes evidence with regard to the quantum of such price at the hands of the first selling registered dealer who had paid the tax on the sale of such goods; or(ii)75 percent of the price at which such goods were sold by the selling registered dealer to the registered dealer claiming the set off, if the registered dealer claiming the set-off is not able to furnish evidence with regard to the quantum of such price at the hands of the first selling registered dealer who had paid the tax on the sale of such goods.(c)The set off shall be admissible under sub-section (1) of Section 13-(i)under clause (a), only in respect of such tax paid goods as are consumed or used as raw material or used as incidental goods during any period and the goods manufactured out of such raw material are sold during such period in Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India; and(ii)under clause (b), only in respect of tax paid goods sold or purchased during any period in the manner specified in sub-clause (i) or sub-clause (ii), as the case may be, of the said clause.(3)The set off shall be claimed by a registered dealer in his return in Form 12 and such claim shall be in respect of the purchase price of raw materials, which have been consumed or used in the manufacture of goods sold in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India during the period to which the return relates.
