TMI Blog2011 (7) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... Government. In any case, the petitioner/manufacturer is free to take up the matter with the Government for providing sufficient safeguard under the VAT scheme which has replaced Sales Tax Act and Rules. - S.T. Rev. Nos. 46, S.T. Rev. Nos. 58 of 2011 - - - Dated:- 7-7-2011 - RAMACHANDRAN NAIR C.N. AND GOPINATHAN P.S. JJ. JUDGMENT The question raised in these connected revision cases filed by the same company is whether the Tribunal was justified in confirming disallowance of sales returns claimed. We have heard counsel appearing for the petitioner and the Government Pleader for the State. The petitioner is a leading manufacturer of medicines distributed in Kerala. The trade practice followed by all medicine manufacturers i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel for the petitioner explained the scheme of marketing of medicine to customers through distributors and retail dealers and the return of the life expired medicines by the retail dealers. The petitioner's case is that the transactions are genuine sales returns eligible for deduction. The Government Pleader referred to judgment of the Supreme Court in Deputy Commissioner of Sales Tax (Law) v. Motor Industries Co. reported in [1983] 53 STC 48 and contended that unless sales return is made within the statutory period prescribed under rule 9(b)(i) dealer is not entitled to deduction. After hearing both sides, what we find is that the petitioner's claim of sales return was not allowed because the rule does not permit it. What was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in assessment and confirmed by the Tribunal. We do not find any error with the finding of the lower authorities. The counsel for the petitioner raised an alternate contention that transaction should be treated as unfructified sales and so much so, since there is no time-limit for claiming deduction the petitioner is entitled to refund of tax paid. This is opposed by the Government Pleader on several grounds. In the first place, the sale of the item has really taken place from the petitioner to the distributor and from the distributor in turn to the dealer. The fact that the last retail dealer could not sell the medicine with the shelf-life period does not mean that the sale by the petitioner to distributor and in turn to dealer had not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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