BP Associates LLP

(1) For the purposes of sub-section (6) of section 9 and 2[sub-clause (ii) of clause (c) of] sub-section (3) of section 10, the tax credit shall be reduced by the following prescribed percentages:-

(a) in the case of goods specified in the Second Schedule 100 percent

(b) in the case of goods specified in the Third Schedule 40 percent

(c) in the case of goods specified in the Fourth Schedule 10 percent

(d) in the case of any other goods specified in clause (e) of sub-section (1) of section 4 16 percent

(e) declared goods, as defined from time to time in section 14 of the Central Sales Tax Act, 1956 (74 of 1956)”

(2) Where a dealer has transferred any goods in the circumstances specified under sub-section (6) of section 9 and has made a reduction of tax credit by the prescribed percentage, he shall be entitled to claim the tax credit so reduced when he brings such goods back into Delhi for sale on which tax is payable under section 3 or for sale in the course of inter-State trade or commerce or for sale outside Delhi or for sale in the course of exports out of the territory of India, subject to the condition that the goods brought back to Delhi are the same goods as originally transferred 1[or the goods processed or manufactured out of the goods as originally transferred.

(3) Where any goods or goods manufactured out of such goods are lost or destroyed, the dealer shall not be eligible to claim tax credit on such goods and the credit taken in any earlier tax period shall be reversed in the tax period in which goods are claimed to have been lost or destroyed. 

(4) For the purpose of sub-section (9) of section 9, the prescribed percentage of reduction of tax credit shall be 2 [2 percent.]