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The State of Tamil Nadu Vs. Indian Cable Company Ltd. - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case NumberTax Case No. 1431 of 1982 (Revision No. 448 of 1982)
Judge
Reported in[1984]56STC192(Mad)
ActsCentral Sales Tax Act - Sections 2
AppellantThe State of Tamil Nadu
RespondentIndian Cable Company Ltd.
Advocates:K.S. Bakthavatsalam, Additional Government Pleader
Excerpt:
- .....had been contracted under the distribution agreement entered into between the assessee and the distributor and it was not as though the additional discount was allowed subsequently on second thought, nor is there any suggested by the assessing authority that rs. 52,285.27 was not, in fact, paid by way of discount. this being so, the tribunal held that the amount cannot form part of the sale price at which the goods were sold and hence it cannot be included in the turnover much less in the taxable turnover. 2. the tribunal's decision is quite right both on the facts and on the application of the law, especially on the definition of section 2(h) of the central sales tax act. hence, the tax case is dismissed.
Judgment:

Balasubrahmanyan, J.

1. The assessee claimed in his assessment a sum of Rs. 52,285.27 which it gave to its distributors as additional discount or rebate, over and above the normal discount. The assessing authority held that the assessee was not entitled to exclude this sum of Rs. 52,285.27 form the taxable turnover. On appeal, the Tribunal pointed out that the liability of the assessee to pay additional discount or rebate had been contracted under the distribution agreement entered into between the assessee and the distributor and it was not as though the additional discount was allowed subsequently on second thought, nor is there any suggested by the assessing authority that Rs. 52,285.27 was not, in fact, paid by way of discount. This being so, the Tribunal held that the amount cannot form part of the sale price at which the goods were sold and hence it cannot be included in the turnover much less in the taxable turnover.

2. The Tribunal's decision is quite right both on the facts and on the application of the law, especially on the definition of section 2(h) of the Central Sales Tax Act. Hence, the tax case is dismissed.


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