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2010 (5) TMI 775 - KERALA HIGH COURTAddition of incentive received by the petitioner from the manufacturer in the form of credit notes as turnover under Explanation VII to section 2(lii) of the Kerala Value Added Tax Act, 2003 Held that:- Nothing stops the manufacturer from recouping the loss sustained by the distributor and besides recouping loss the manufacturer can even provide for margin also to dealer which is done subsequent to the sales by issuing credit notes as is done in this case. On facts found by the lower authorities, we have no doubt in our mind that credit notes issued by the manufacturer to the petitioner towards recoupment of additional sale price is for the goods sold by the petitioner. So much so Explanation VII is clearly attracted in this case and the Tribunal therefore rightly upheld the order of the first appellate authority sustaining the assessment of credit amount paid by the manufacturer to the petitioner who is the distributor of their products. Revision dismissed.
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