(1) Where a dealer makes sales of cotton yarn, other than those in hank to any other dealer for use by him in the manufacture in West Bengal of hosiery goods or textile fabrics, he may deduct under clause (c) of sub-section (1) of section 16, the turnover of such cotton yarn arrive at the turnover of sales on which tax is payable and he shall, on demand by the appropriate authority under the Act, furnish the relevant tax invoice or invoice or cash memo or bill and other related documents evidencing such sales:

Provided that no such deduction shall be allowed unless the dealer selling the goods, on demand by the appropriate authority under the Act, furnishes the relevant tax invoice or invoice or cash memo or bill and other related documents evidencing such sales.

(2) Where a dealer makes sales or resales of cotton yarn, other than those in hank, to any other dealer who intends to make resale of such cotton yarn to another dealer of West Bengal for resale in West Bengal or for use by such purchasing dealer in the manufacture in West Bengal of hosiery goods or textile fabrics, the selling dealer may deduct under clause (c) of sub-section (1) of section 16 the turnover of such cotton yarn to arrive at the turnover of sales on which tax is payable and he shall, on demand by the appropriate authority under the Act, furnish relevant tax invoice or invoice or cash memo or bill and other related documents evidencing such sales and a certificate in the Form appended to this rule, duly filled in and signed by the purchasing dealer or by a person authorised by such purchasing dealer for this purpose;

Procide that no such deduction shall be allowed unless the dealer selling the goods, on demand by the appropriate authority under the Act, furnishes the relevant tax invoice or invoice or cash memo or bill and other relevant documents evidencing such sales and the relevant certificate.

FORM OF CERTIFICATE

[See rule 26A(2)]

To

............................................. (Selling dealer)

............................................. (Address)

............................................. Registration No. (TIN), if any,

Certified that the goods purchased from you as specified in the *tax invoice/invoice/cash memo/bill stated below are for the purpose of resale by *me/us of these goods to another dealer of West Bengal for resale by him in West Bengal or for use by him in the manufacture in West Bengal of hosiery goods or textile fabrics and are not intended to be disposed of by *me/us otherwise than by way of such resale in West Bengal.

Certificate No. (TIN), if any :

*Strike out which is not applicable.