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2008 (5) TMI 617 - DELHI HIGH COURTWhether the trade discount given by the petitioner to its distributors and dealers through credit notes has rightly been disallowed and tax imposed thereon? Held that:- Since the facts in this regard at not at all clear, it will be appropriate if the matter is dispassionately re-examined by the Joint Commissioner limited only to the question whether the petitioner has passed on the tax burden to its dealers and distributors or not. If it is found that the petitioner has passed on the tax burden, then, on the principles of unjust enrichment, the petitioner will not be entitled to a refund for that amount. But if it has not passed on the tax burden then, of course, the petitioner will be entitled to a refund. To this extent, while we quash the order No. 437 dated October 20, 2006 we direct the Joint Commissioner to take a decision within six weeks from today limited to the question whether, despite the trade discounts given by the petitioner, it has passed on the tax burden to its dealers and distributors or not. Of course, the petitioner will be entitled to produce all its documents to show that the tax burden has not been passed on to the dealers and distributors.
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