The judgment of the Court was delivered by

A. P. SHAH, J. - This is a petition by the assessee arising out of the proceedings under the Bombay Sales Tax Act, 1959 (hereinafter called "the Act"). The assessee is a company registered under the Companies Act and engaged in manufacture of motor vehicle chassis and spare parts. The assessee claimed certain set-off against the sales tax payable by them for the period from April 1, 1982 to March 31, 1983 invoking the provisions of rules 41D and 41E framed under the Act as they stood at the relevant time. The set-off claimed by the assessee was in terms of section 42 and rules 41D and 41E, which may now be referred to :

Section 42 reads thus :

"42. Drawback, set-off, refund, etc. - (1) The State Government may by rules provide that -

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

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(ii) paid or levied or leviable in respect of any earlier sale or purchase of goods under this Act or any earlier law, be granted to the purchasing dealer."

Rule 41D in so far as is relevant for our present purpose reads as fol