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2022 (1) TMI 442 - HC - VAT and Sales TaxLevy of CST - inter-state sales effected without C-Form declarations - amount claimed as deduction by the petitioner to be in the nature of discount requiring compliance of Rule 3(2)(c) of the Karnataka Value Added Tax Rules, 2005 or not - levy of CST on the notional value adopted in compliance of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - HELD THAT:- It is not in dispute that the tax invoices were raised by the petitioner and subsequently credit notes were issued, whereby in the credit note, value is shown as ₹ 3/-, whereas ₹ 6/- is shown in the invoice. The authorities referring to Rule 3(2)(c) of the Rules and Section 30 of the Act as it stood during the relevant period proceeded to reject the claim of the assessee i.e., the value of goods sold to any related parties in terms of Rule 9 of the Central Excise Valuation (Determination of price of Goods) Rules, 2000. The Tribunal rejected the appeal on the premise that the petitioner cannot claim reduction in the notional value, much less the discount not being reflected in the invoice. In view of the ruling of the Hon’ble Apex Court in the case of M/S. SOUTHERN MOTORS VERSUS STATE OF KARNATAKA AND OTHERS [2017 (1) TMI 958 - SUPREME COURT], to deny the benefit of deduction only on the ground of omission to reflect the trade discount though actually granted in future, in the tax invoice/bill of sale at the time of the original transaction would be to ignore the contemporaneous actuality and be unrealistic and held that the view of the authorities runs counter to the avowed objective of the correct determination of the taxable turnover considering Section 30 of the Act, which stood during the relevant period and Rule 3(2)(c) and the proviso thereof. Though the petitioner has contended before the Tribunal that issuing of credit note to the purchasing dealers could not be construed as discount, even assuming that it is discount not reflected in the books of accounts, the principles enunciated by the Hon’ble Apex Court in Southern Motors, would certainly apply to the facts of the case on hand. Revision petition allowed.
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