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2016 (11) TMI 980 - HC - VAT and Sales TaxTrade discount - authorised dealer of reputed motor vehicle manufacturers - applicant allows discount at the time of sale of vehicles to its customers as per the policy of the company, however, since the invoices are to be raised for full value of the vehicles, discount is allowed by issue of credit notes to the respective customers. Such discount being as per the company policy has the effect of reducing the sell price of the vehicle. The discount is described as rebate in the credit notes issued to the customers. The customer, thus, pays the net amount after reducing the rebate allowed to him by way of credit notes. The applicant, while filing its returns for the period under consideration, while computing its taxable turnover, claimed deduction of discount / rebate allowed by it to its customers - whether deduction claim of trade discount justified? Held that: - no useful purpose would be served by calling upon the Tribunal to state the case and make a reference. Thus, to avoid unnecessary wastage of time, we think it appropriate to decide the matter. Since the facts are admitted and the law has been settled by their Lordship of the Supreme Court, we think that the question as raised by the assessee has to be answered in its favour. Resultantly, we do so. It is held that the Tribunal was not justified in rejecting the claim of the applicant by holding that the assessee is not entitled for the Trade Discount and, therefore, the orders of the second Appellate Authority dated 14/08/2007 and order passed in rejecting the application under Section 70(1) dated 28/07/2016 are liable to be set aside - the matter is remitted to the Board to decide the second appeal afresh and decide the same in accordance with law - application disposed off.
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