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2016 (7) TMI 39 - HC - VAT and Sales TaxValuation - reduction of discount given to customers on the sales finalized at the year end from the next year's turnover - assessment year 2007-08 - Since this event took place during the financial year 2008-09, the assessee claimed credit of such discounted sale price and the consequential reduced tax collected from the consumers in such year. - Commissioner was of the opinion that the benefit of discounted price could be granted to the dealer only during the same year in which the event took place. - Tribunal observed that he procedure adopted by the assessee was legal and proper. - Sections 60 and 61 of the Gujarat VAT Act and Rule 43 of the VAT Rules Held that:- In terms of Sections 60 and 61 of the VAT Act thus, the assessee was entitled to issue credit notes once the amount of tax shown as charged in the tax invoice exceeded the actual tax charged in respect of the sale concerned. This is precisely what the assessee had done and claimed benefit of reduced tax collected from the purchasers. This devise, in our opinion, was not prohibited by Section 8 of the VAT Act, reliance upon which has been made by the department. In essence what the assessee did, was to reduce the total turnover of the assessment year 2008-09 to the extent its value after discount during the previous year had come down which would have a direct relation to the tax payable by the assessee. - No demand - Decided against the revenue.
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