JUDGMENT D. M. DHARMADHIKARI, J. - By this reference under section 44(1) of the Madhya Pradesh General Sales Tax Act, 1958, the following question of law has been referred to this Court for decision : "Whether, in the facts and circumstances of the case, the Tribunal was justified in disallowing set-off under proviso (vii) of section 3(1) of the Entry Tax Act to the dealer as he had purchased goods after paying entry tax to the selling dealer ?" 2. The reference arises on the following facts : The applicant who is a dealer in grain was assessed to entry tax for the period November 1, 1978 to October 21, 1979 by order dated September 6, 1982. The applicant had purchased entry tax-paid goods worth Rs. 31,91,245. He has sold certain goods worth Rs. 61,80,000 in the course of inter-State trade or in the course of sales outside the State. The applicant claimed set-off under proviso (vii) of section 3(1) of the Entry Tax Act on the ground that he had purchased entry tax-paid goods and had sold some of them in the course of inter-State trade or commerce or in the course of sales outside the State. This set-off was disallowed by the assessing authority vide annexure B. The first appellate authority by order annexure C confirmed the said order of disallowing the set-off claimed by the applicant. 3. The Tribunal in the second appeal vide order dated May 22, 1984, maintained the orders of the lower taxing authorities and in deciding against the applicant in the matter of disallowing set-off placed reliance on a Division Bench opinion of the Tribunal in Appeal No. 46-PBR/84 (A copy of which has been filed as annexure D). The Tribunal was of the opinion that the applicant had not paid entry tax himself but had purchased the tax-paid goods for which no set-off could be granted to him under proviso (vii) of section 3(1) of the Entry Tax Act. 4. For deciding the question referred it will be necessary to refer to the proviso (vii) of sub-section (1) of section 3 of the Entry Tax Act which reads as under : "Section 3. Incidence of taxation. 4. For deciding the question referred it will be necessary to refer to the proviso (vii) of sub-section (1) of section 3 of the Entry Tax Act which reads as under : "Section 3. Incidence of taxation. - (1) There shall be levied an entry tax - (a) on the entry in the course of business of a dealer of goods specified in Schedule II, into each local area for consumption, use or sale therein; and (b) on the entry in the course of business of a dealer of goods specified in Schedule III, into each local area for consumption or use of such goods as raw material or as packing material or in the execution of works contracts but not for sale therein, and such tax shall be paid by every dealer liable to tax under the Sales Tax Act who has effected entry of such goods : Provided that no tax under this sub-section shall be levied : (i) ............. (vii) in respect of goods exempted from entry tax under section 10, and if tax on the entry of any goods specified in Schedule II or Schedule III effected during any period has been paid by a dealer and subsequent to such entry the goods are disposed off in the manner described in clause (v) or clause (vi) of this proviso, the dealer shall be entitled to a set-off of the tax already paid by him in respect of such goods and such set-off shall be adjusted towards the tax payable by him for the period during which the goods were so disposed off or for any subsequent period in such manner as may be prescribed. Provided further that notwithstanding anything contained in this Act, where a registered dealer in the course of his business, purchases goods from a person or a dealer other than a registered dealer who has effected entry of such goods into the local area prior to such purchase, the entry tax shall be paid by the dealer who has purchased such goods." 5. In the present case, it is an admitted position that it is the selling dealer who had paid the entry tax under the Act and not the applicant who is a purchasing dealer of the entry tax-paid goods. In the present case, it is an admitted position that it is the selling dealer who had paid the entry tax under the Act and not the applicant who is a purchasing dealer of the entry tax-paid goods. The question before us is whether the applicant as a purchasing dealer of tax-paid goods is entitled to set-off under proviso (vii) of sub-section (1) of section 3 of the Act quoted above. 6. It is clear to us from the scheme of section 3, particularly the proviso (vii) of sub-section (1) thereof that set-off is available only to a dealer who has paid the tax under the Act in respect of such goods. Our above view is based on expressions used in proviso (vii) such as "has been paid by a dealer", "set-off of tax already paid by him", and "adjusted towards the tax payable by him". Reference in this expression "him" is to the dealer who had effected the entries of goods and paid the tax thereon. It may be that the present applicant who is a purchasing dealer has purchased entry tax-paid goods but the same would be deemed to be part of the sale price and not the payment of entry tax as such. The set-off can be claimed only by the dealer who has paid the tax and by no one else. 7. We are in complete agreement with the view expressed by the Division Bench of the Tribunal that any other interpretation on the proviso (vii) to sub-section (1) of section 3 of the Entry Tax Act entitling all purchasing dealers from the selling dealer paying the tax entitled to set-off would upset the whole scheme of the provision contained in the said proviso. The Tribunal in its opinion rightly observed that the words "by him" in proviso (vii) of sub-section (1) of section 3 would become superfluous if the intention was to cover cases of payment of entry tax by anyone in the series of dealer effecting sale of the same goods. We are also clearly of the opinion that set-off under proviso (vii) can be claimed only by that dealer who has effected the entry of the goods and paid the tax and by no other purchaser from him because indirect modes of payment of entry tax are not entitled to set-off. 8. We are also clearly of the opinion that set-off under proviso (vii) can be claimed only by that dealer who has effected the entry of the goods and paid the tax and by no other purchaser from him because indirect modes of payment of entry tax are not entitled to set-off. 8. Consequently, the reference is answered in the affirmative in favour of the Revenue and against the assessee. Since the assessee has not entered appearance himself or through his counsel in spite of notice and has not contested the case, we leave the parties to bear their own costs. Reference answered in the affirmative.