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2016 (2) TMI 1053 - HC - VAT and Sales TaxDeduction of discounts - The petitioner claims that it is a dealer in cars and is entitled to deduction of discounts allowed to customers in the sale price of cars after the cars were sold by issuing credit notes - reliance was placed by the petitioner in the case of Pratham Motors Pvt. Ltd. v. Additional Commissioner of Commercial Taxes [2012 (9) TMI 907 - KARNATAKA HIGH COURT], where the issue was Whether it is permissible for the assessee to show the discount given by a separate credit note subsequently and claim deduction even though the said discount is not shown in the tax invoice or sale bill and it was held that Ratio laid down in Southern Motors' case [2008 (7) TMI 862 - KARNATAKA HIGH COURT] does not prohibit the issuance of credit note subsequent to the sale bill. It is held that such modification in the sale bill is permitted if it is done within six months from the date of sale transaction - Held that: - Interpreting rule 31 of the KVAT Rules, this court held that a dealer was entitled to give further discount even after the sale has been completed provided the discounts are customary practice in the trade or otherwise known as trade discount and that the onus of proving the said fact was on the assessee and he ought to demonstrate that the discount given was in accordance with the provisions of the Act and Rules - the referred case by petitioner is squarely applicable to the present case - the petitioner has made out a case - petition allowed - decided in favor of petitioner.
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