17. Deduction, Exemption and Assessment of Tax .

(1) In determining the purchase value liable to tax under the Act, the amount relating to the purchases made within the local area from a registered dealer carrying on business in the same local area shall be deducted. The purchase value shall be determined on the basis of the invoices unless the same are rejected for reasons to be recorded in writing and after giving reasonable opportunity of being heard to the dealer.

(2) The purchase value of scheduled goods entering into the local area, which has already been subjected to tax under these rules or on which entry tax under these rules has been paid by any other person or dealer and for which the proof as specified in sub-rule(5) of rule 3 has been furnished by the dealer, shall be deducted in determining the purchase value liable to tax.