69,707.68 which the assessee had claimed as service discount under Rule 9 a of the Rules and a further amount of Rs.982.83 under Rule 9 b i of the Rules being the value of goods returned.
The appeal filed against that order by he Department before the Appellate Tribunal was dismissed.
Aggrieved by the order of assessment the assessee filed an appeal before the Deputy Commissioner, Agricultural Income Tax and Sales Tax Appeal , Ernakulam.
He disallowed the claim in respect of the value of goods which had been returned OD the ground that it related to the sales companypleted in the previous assessment year i.e. 1972 73.
Appeal by Special leave from the Judgment and order dated the 11th June, 1981 of the Kerala High Court in T.R.C. No.
552 70 being the turnover of goods returned within a period of three months from the date of sale.
Against the order of the Tribunal the Department filed a revision petition before the High Court of Kerala which again was dismissed by its judgment dated June l l, 1981.
47,42,687.71 by disallowing the claim for exemption of an amount of Rs.
210 of 1983.
In that appeal, the exemption claimed in respect of service discount was allowed But the claim in respect of sales returns was allowed to the extent of the turnover of Rs.
A. Francis and V.J. Francis for the Appellant.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
For the assessment year 1973 74 ending March 31, 1974 the assessment had been companypleted under the Act on the best judgment basis determining the taxable turnover at Rs.
The assessee M s. Motor Industries Co., Ernakulam is a dealer in diesel, fuel injection parts etc.
This appeal is preferred with the special leave of this Court against the aforesaid judgment of the High Court.
The Judgment of the Court was delivered by VENKATRAMIAH, J. In this appeal by special leave arising under the Kerala General Sales Tax, Act, 1963 hereinafter referred to as the Act two questions arise for companysideration.
Balakrishnan for the Respondent.
They are i whether on the facts and in the circumstances of the case the Appellate Tribunal was justified in law in holding that the assessee was entitled to, exemption under Rule 9 a of the Kerala General Sales Tax Rules, 1963 hereinafter referred to as the Rules from payment of sales tax on the turnover relating to service discount and ii whether the value of goods returned by the purchasers companyld be deducted under Rule 9 b i of the Rules from the total turnover of the year of assessment in which the goods were actually returned when they had been sold in the previous assessment year.
117 of 1980.
The Assistant Commissioner of Sales Tax Assessment who was the assessing authority disallowed the claim in respect of service discount on the ground that the amount in respect of which deduction was claimed had number been allowed as a discount in accordance with the terms of sale but had been allowed as an over riding companymission and incentive to promote trade.
