Skip to content


The State of Tamil Nadu Vs. Kapadia Paints and Allied Industries - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case NumberTax Case No. 940 of 1977 (Revision No. 225 of 1977)
Judge
Reported in[1983]53STC96(Mad)
AppellantThe State of Tamil Nadu
RespondentKapadia Paints and Allied Industries
Advocates:Additional Government Pleader
Cases ReferredTraders and Traders v. State of Tamil Nadu
Excerpt:
- .....on 13th december, 1970, while the credit note passed by the assessee was on 30th june, 1971. the claim for sales return was made on 25th may, 1972. since the sales related to the prior year, the assessing authority considered that the claim should have been made within six month from the date of sale. therefore, deductions claimed by the assessee was not allowed. the assistant appellate commissioner confirmed the disallowance. the tribunal following a decision of this court in madras radiators and pressings v. state of tamil nadu [1976] 37 stc 123, considered that the claim should have been allowed. the state challenges this order of the sales tax appellate tribunal. 2. the decision in madras radiators and pressing v. state of tamil nadu [1976] 37 stc 123 (referred to above) has been.....
Judgment:

Sethuraman, J.

1. This is a revision petition to revise the order of the Sales Tax Appellate Tribunal dated 27th November, 1976. The amount involved is a sum of Rs. 17,760 being the disallowance of sales returns as made in the assessment by the assessing authority. The said goods were returned by the Southern Railways, on the ground that the materials supplied by the assessee did not come up to the required standard. The related sale was effected on 13th December, 1970, while the credit note passed by the assessee was on 30th June, 1971. The claim for sales return was made on 25th May, 1972. Since the sales related to the prior year, the assessing authority considered that the claim should have been made within six month from the date of sale. Therefore, deductions claimed by the assessee was not allowed. The Assistant Appellate Commissioner confirmed the disallowance. The Tribunal following a decision of this Court in Madras Radiators and Pressings v. State of Tamil Nadu [1976] 37 STC 123, considered that the claim should have been allowed. The State challenges this order of the Sales Tax Appellate Tribunal.

2. The decision in Madras Radiators and Pressing v. State of Tamil Nadu [1976] 37 STC 123 (referred to above) has been overruled by a Full Bench decision and the Full Bench decision is reported in Traders and Traders v. State of Tamil Nadu [1977] 40 STC 289. Applying the said decision, we hold that the assessee was not eligible for the claim for deduction on the ground of sales returns, because the claim had not been filed within six months as contemplated by the statute.

3. The revision is accordingly allowed. There will be no order as to costs.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //