COMMISSIONER OF SALES TAX, BOMBAY ETC.ETC. vs BHARAT PETROLEUM CORPORATION LTD. ETC.ETC.

The Supreme Court ruled on the applicability of set-off under the Bombay Sales Tax Act, 1959, specifically addressing Section 42 and Rules 41 and 41-A. The Court held that a manufacturer is entitled to a set-off of sales tax paid on raw materials used in the production of both taxable and non-taxable goods, provided the conditions of Rule 41 are met. The judgment affirmed the High Court's decision allowing the full set-off claimed by the assessee, emphasizing that the nature of the goods manufactured does not preclude the right to claim set-off for all raw materials used.