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TMI Blog2011 (2) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... n the premise that the discounts had been granted through credit notes raised subsequent to the tax invoices which would result in the reduction of turnover/price and constitute tax liability. According to the petitioner, the decision of the second respondent is arbitrary, illegal and ultra virus as per section 2(36), 4, and 30 of the KVATAct, 2003 read with rule 31 of the KVATRules and articles 14, 19(1)(g), 265 and entry 54 of List II of the Seventh Schedule to the Constitution of India. The assessing officer without extending the discount on the sales, treating it is a post discount, has passed the impugned order, on which aspect, the Division Bench of this court has already dealt with. The learned senior counsel appearing for the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actual credit in the account is illegal. In so far as the taxable turnover is concerned, whether the tax invoice issued reflecting the amount has to be taken into consideration for the purpose of calculating the imposition of tax and collection of tax or reduction of price has to be taken at the time of delivering the goods on or after delivery, is to be considered. In the decision reported in [1980] 45 STC 32 (SC); [1980] 1 SCC 360 in the case of Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Advani Oerlikon (P.) Ltd., the apex court, with reference to the taxable turnover is concerned, while defining what is "sale price" and "trade discount" on the catalogue price allowed by the wholesaler to the retailer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal turnover on account of the credit notes issued, this court has remanded the matter to the Tribunal to consider all those credit notes, which necessarily mean that by issuance of the credit notes, the amounts as mentioned in the invoices would be reduced which would automatically result in reduction in the over all turnover relating to the goods sold. Rule 3, of the KVATRules, 2005 provides for determination of turnover: 1. The total turnover of a dealer, for the purposes of the Act, shall be the aggregate of,- (a) the total amount paid or payable by the dealer as the consideration for the purchase of any of the goods in respect of which tax is leviable under sub-section (2) of section 3; (b) the total amount paid or payable to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notes. Rule 31 is general in nature and rule 3(2)(c) is specific and harmonious interpretation of these rules is to be made. Since the Division Bench of this court in STRP No. 117 of 2008 and W.A. No. 467 of 2010 and connected matters has opined that the discount given in similar circumstances subsequent to the issuance of the invoice results in the lowering of the turnover, the overall opinion formed by the assessing officer at the time of calculating imposition of tax on the turnover is without taking into consideration the discount given. The sale invoice given by the dealer would be assessed on the total turnover of the assessee. But, the credit notes subsequently issued by the assesse would automatically result in lowering the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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