22B. Set-off of tax payable on sales of certain goods manufactured in West Bengal

(1) Subject to the other provisions of this section, there shall be a set-off of the amount of tax which has been realised from a registered dealer in respect of sales to him of such goods as may be prescribed for use by him as input directly in the manufacture in West Bengal of such finished goods as may be prescribed against the amount of tax payable by such registered dealer on his sales in West Bengal of the goods so manufactured.

(2) A registered dealer who intends to claim a set-off of the amount 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 price and quantity of the goods purchased for use directly in the manufacture in West Bengal of the finished goods, referred to in sub-section (1) and he shall also maintain accounts, records or evidence in respect of sale price and quantity of the goods so manufactured by him in West Bengal.

(3) No claim for set-off of tax under sub-section (1) shall be allowed to a registered dealer in respect of tax realised from him on the sales made to him unless such sales are made to him by a registered dealer and the amount of tax realised from him is shown to have been separately charged in the bill or cash memo issued to him by the registered dealer from whom he has purchased such input.

(4) A registered dealer shall not be entitled to any claim under sub-section (1) for the set-off of the amount of tax realised from him in respect of the sales to him of the goods by any other registered dealer who, during the eligible period, enjoys exemption from payment of tax under section 39, or remission of tax under section 41, section 42 or section 43, or enjoys the benefit of deferment of payment of tax under section 40, section 42 or section 43, unless the registered dealer claiming such set-off furnishes a declaration referred to in the second proviso to sub-section (2) of section 17 to the registered dealer from whom such goods have been purchased for use by him as input.

(5) No registered dealer who enjoys tax holidays under section 39, deferment of payment of tax under section 40 or section 42 or section 43, or enjoys remission of tax under section 41, section 42 or section 43, shall be entitled to claim set-off under sub-section (1), unless the registered dealer claiming such set-off furnishes the declaration referred to in the second proviso to sub-section (2) of section 17 to the registered dealer from whom any prescribed goods have been purchased by him in West Bengal for use by him as input directly in the manufacture as referred to in sub-section (1).