(1) Subject to the other provisions of this section, there shall be a set off of the amount of tax realised from a registered dealer (hereinafter referred to as re-roller) in respect of his purchases of iron and steel referred to in clause (iv) of section 14 of the Central Sales Tax Act, 1956 (74 of 1956) against the amount of tax payable by him under this Act on sales of iron and steel referred to in clause (iv) of that section manufactured by him in West Bengal.

(2) Where a re-roller has made purchases of an item of iron and steel falling in that sub-clause or in any other sub-clause of clause (iv) of section 14 of the Central Sales Tax Act, 1956, and the amount of tax in respect of such purchases has been realised from him by a registered dealer selling such item of iron and steel, and where such re-roller uses directly the above item of iron and steel so purchased in the manufacture or re-rolling of another item of iron and steel falling in another category as specified in any other sub-clause of clause (iv) of that section, the re-roller may set off the amount of tax so realised from him against the amount of tax payable by him under this Act on sales of the item of iron and steel manufactured by him :

PROVIDED that where the re-roller makes a sale of the item of iron and steel manufactured by him to a registered dealer for use by such dealer in the manufacture of any goods other than iron and steel referred to in clause (iv) of that section, the claim for set off of the amount of tax realised from the re-roller in respect of his purchases shall not exceed the amount of tax payable by the re-roller under this Act on his sales of the item of iron and steel manufactured by him.

(3) A re-roller who intends to claim set off of tax under sub-section (1) shall, for the purpose of determining the amount of tax to be set off, maintain accounts, records or evidence in respect of the value or quantity of the item of iron and steel purchased by him in West Bengal for re-rolling and also in respect of the value or quantity of the item of iron and steel manufactured therefrom and sold by him in West Bengal.

(4) No claim for set off under sub-section (1) shall be allowed to a re-roller against his purchases of an item of iron and steel referred to in clause (iv) of section 14 of the Central Sales Tax Act, 1956, unless the amount of tax has been separately charged and shown in the bill or cash memo issued to him by a registered dealer from whom he has purchased such item of iron and steel.

(5) A re-roller shall not be entitled to any claim for set-off of tax under sub-section (1) realised from him in respect of his purchases of iron and steel referred to in clause (iv) of section 14 of the Central Sales Tax Act, 1956, from a registered dealer who,-

(a) enjoys exemption from payment of tax under section 39, or

(b) enjoys remission of tax under Section 41, section 42 or section 43, or

(c) enjoys the benefit of deferment of payment of tax under section 40, section 42 or section 43,

unless the re-roller claiming such set-off furnishes a declaration referred to in the second proviso to sub-section (2) of section 17 to such dealer from whom such iron and steel is purchased.

Explanation - For the purpose of this section, the expression "reroller" means a dealer who manufactures in West Bengal any item of iron and steel specified in any sub-clause of clause (iv) of section 14 of the Central Sales Tax Act,1956, from any other item of iron and steel falling in the same sub-clause or in any other sub-clause of that clause.