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2016 (12) TMI 960 - HC - VAT and Sales TaxValuation - inclusion of quantity discount given to the dealers as part of the turnover is justified or not? - Held that: - Section 7 only indicates that the dealer who allows trade discount or incentive in terms of quantity in goods in relation to any sale effected by him. The quantity so allowed as trade discount or incentive shall be deemed to be a sale by the dealer. Statute does not say that the said trade discount shall form part of the turnover of the dealer. This aspect has been clarified by the Commissioner in the circular along with the illustration. - There is no evidence to show that the end customer was given the benefit of trade discount, is not at all a matter, which the petitioner is concerned. As far as the petitioner is concerned, he had effected sale of goods by providing the quantity discount and the turnover is only with respect to the consideration received by the petitioner for the quantity which is actually sold and the discount given to the dealer in question. Under such circumstances, I am of the view that this writ petition is to be allowed - The assessing authority is directed to reconsider the matter afresh in accordance with the observations made above and Circular No.5/05 of the Commissioner of Commercial Taxes - appeal by way of remand.
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