Please refer ammendment to notification no.. 21/P.O.5/2005/S.92/2005 dated 06/01/2010 under Punjab VAT Act, 2005. Please tell me the meaning of condition 6 given in this ammendment ? Is there any case law on same ? It says that notional ITC can be set off only against sale of exempted goods. So, as per this, is it necessary to first set off Actaul ITC with output tax & then notional ITC to be set off against output tax ?