JUDGMENT

RANGANATHAN, J.:- These are appeals by the Revenue arising out of proceedings under the Bombay Sales Tax Act, 1959 (hereinafter -called the Act). The respondents, Bharat Petroleum Corporation Ltd. (in C.A. 1031 of 1979) and Phulgaon Cotton Mills Ltd. (in the four other appeals) are assessees to sales tax. They claimed a setoff, against the sales tax payable by them for the years in question, of certain sums, invoking the provisions of Rr. 41 and 41 A framed under the Act, as they stood at the relevant time. As the wording of these rules, in so far as it is material for our present purposes, is identical and the basis of the claim was also common, it will be convenient to dispose of both seta of appeals by a common judgment and we proceed to do so.

2. The set off claimed by the assessee was in terms of S. 42 and Rr. 41 and 41 A, which may now be referred to:

1.Section 42 reads thus:

"42. Draw-back, set off, refund etc.

The State Government may provide by rules that-

(a) in such circumstances and subject to such conditions as may be specified in the rules a draw-back, set off or refund of the whole or any part of the tax-

(i) xx xx xx

(ii) paid or levied or leviable in respect of an