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Deputy Commissioner of Agricultural Income Tax and Sales Tax (Law), Board of Revenue (Taxes), Ernakulam Vs. Aluminium Industries Ltd., Kundara - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtSupreme Court of India
Decided On
Case NumberSpecial Leave Petition (Civil) Nos. 354/357 of 1977
Judge
Reported inAIR1980SC839; (1980)1SCC467; 1980(Supp)SCC467; [1980]45STC251(SC); 1979(11)LC848(SC)
ActsCentral Sales Tax Act, 1956
AppellantDeputy Commissioner of Agricultural Income Tax and Sales Tax (Law), Board of Revenue (Taxes), Ernaku
RespondentAluminium Industries Ltd., Kundara
Cases ReferredErnakulam v. Advani Oerlikon
Excerpt:
.....for assessment under act sale price must be computed by including amount allowed by way of trade discount - in view of decision of court in similar matter amount allowed as trade discount not be included in taxable turnover. - [ r.v. raveendran and; j.m. panchal, jj.] (a) criminal procedure code, 1973 - ss. 438 and 437 - anticipatory bail - conditions that may be imposed, enumerated - factors to be considered by court - irrelevant and unwarranted conditions for release on bail - sustainability - held, harsh, onerous and excessive conditions which frustrate the very object of anticipatory bail not to be imposed - subjecting an accused to any conditions other than conditions enumerated in the section would be beyond jurisdiction of the court - the conditions which can be imposed..........sales tax act, 1956, the sale price must be computed by including the amount allowed by way of trade discount.3. the assessee effected sales of goods to its dealers and allowed a trade discount on the catalogue price to cover the expenses incurred by the dealers and permit a margin of profit to them. the dealers were required to sell the goods at the catalogue price. for the assessment years 1960-61 to 1963-64, the high court of kerala has held that the amount allowed as trade discount could not be included in the taxable turnover. it has relied on orient paper mills v. state of orissa [1975] 35 s.t.c. 84. for the reasons contained in our judgment delivered today in deputy commissioner of sales tax (law), board of revenue (taxes), ernakulam v. advani oerlikon (p.) ltd., trivandrum :.....
Judgment:
ORDER

ON THE APPEALS

2. These appeals raise the question whether for the purpose of determining the taxable turnover for assessment under the Central Sales Tax Act, 1956, the sale price must be computed by including the amount allowed by way of trade discount.

3. The assessee effected sales of goods to its dealers and allowed a trade discount on the catalogue price to cover the expenses incurred by the dealers and permit a margin of profit to them. The dealers were required to sell the goods at the catalogue price. For the assessment years 1960-61 to 1963-64, the High Court of Kerala has held that the amount allowed as trade discount could not be included in the taxable turnover. It has relied on Orient Paper Mills v. State of Orissa [1975] 35 S.T.C. 84. For the reasons contained in our judgment delivered today in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Advani Oerlikon (P.) Ltd., Trivandrum : 1981(8)ELT801(SC) , we are of the opinion that the High Court is right.

4. The appeals are dismissed with costs. Costs to be in one set only.


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