TMI Blog2015 (11) TMI 1654X X X X Extracts X X X X X X X X Extracts X X X X ..... e has entered into any contract or agreement with the purchasers and that the credit notes issued by him are in pursuance of the incentive scheme or the contract or agreement. The proceedings also do not reveal as to whether the assessee has placed before the authorities the tax invoices, sale bill and monthly returns along with the credit and debit notes. It is incumbent upon the assessee to place the aforesaid records before the authorities and the authorities ought to consider the same and thereafter render a finding. This Court after perusal of the records is convinced that such an exercise is not forthcoming from the records. Under the circumstance, this Court is of the considered opinion that it is a fit case to be remanded to the Assessing Authority with a direction to the appellant/assessee to furnish all details - appeal allowed by way of remand. - STA No. 701 of 2013 - - - Dated:- 2-11-2015 - A. S. Bopanna And G. Narendar, JJ. For the Appellant : Ameet Kumar Deshpande For the Respondent : Syed Habeeb ORDER G. Narendar, J. The appellant (assessee henceforth) is before this court being aggrieved by the order of the first respondent in proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and thereafter the appellant/assessee submitted the requisite information in Form-100. After re-assessment the Assessing Authority levied a sum of ₹ 45,128/- as additional tax and penalty for the Assessment Year ending March 2007. Aggrieved by the same the assessee preferred an appeal under Section 62 of the Act impugning the assessment order under Section 39(i) (a) of the Act. 6. In the first appeal it is contended that the Assessing Authority has erred in disallowing the discount allowed by the assessee and failed to see that the discounts allowed is as per the KVAT Act. It was contended that their sellers had given them discount of ₹ 2,22,942/- and according to their regular practice prevailing in the business they had in turn given discounts to the tune ₹ 5,33,445/- as permitted under the provisions of Sub Rule (2)(C) of Rule 3 of the Rules 2005 and that there is no bar to allow more discount to the customers; that the disallowance of the discount over and above the discounts received by them is illegal. It is contended that they have given discounts to the sub dealers and retailers at the end of the year and had issued credit notes and recorded the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the same has to be gone into and determined by the authorities. 9. In the above rectification proceedings it has been further argued that the provisions of Section 3 (3) makes it mandatory to declare such credit notes and that the order in appeal has been passed ignoring the import of the provisions of Section 30(1) r/w. Rule 31 of the Rules and they being substantive provisions which provide for allowance of discounts by the dealer and such discounts having been given by the assessee, the assessment ought to have been on the lesser or actual value after giving credit to the discounts. It is further alleged in the rectification of mistake apparent petition that though the books of accounts and relevant documents (no details of the same are forthcoming) were placed before the first appellate authority, the order was passed ignoring the same. 10. Thereafter the assessee having made a statement about the scheme of the Act, provisions of law and the broad principles of settled Law which governs the subject matter, has contended that the earlier order in appeal suffers from an error apparent on the face of the records. Thereafter the assessee has listed several citations and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sional Authority has fallen into the same error as committed by the First Appellate Authority. He has not adverted to any material particulars or factual aspects of the case and has approached the matter in a perfunctory manner. 14. The Original Authority, the First Appellate Authority and the Revisional Authority are to be faulted for the only reason that they have not adverted to the factual materials and particulars of the case which was their bounden duty. The Authorities have ventured into the exercise of interpretation of the provisions and application of broad principles as laid down by the Hon ble Apex Court. It is an undisputed fact that the law as laid down by the Hon ble Apex Court and by this Court, the interpretation placed on the statute or a principle of law enunciated are precedents and binding on the authorities but it is also an undisputed fact and declared law that the same are evolved in a particular set of facts and the said precedent is applicable in similar set of facts. The broad principles of law as laid down by the Hon ble Apex Court or by this Court has to be applied in full force but after adverting to the material facts of each case, which exercise t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the provisions being in paramateria, the principle laid down by the Apex Court is applicable in the facts of the case. That apart, the provisions of the Sales Tax Rules particularly Rule 31 empowers the dealer to give further discounts in the form of credit notes and debit notes. The provisions enabling the issuance of credit and debit notes is made subject to the provisions of Rule 30 of the Rules. 19. It is seen that Rule 3 deals with determination of total and taxable turn over. Clause (c) of Sub Rule (2) refers to all amounts allowed as discounts. Hence there can be no dispute that the taxable turnover is the net amount after allowing discounts permissible under law and the discounts ought to be given in the manner prescribed in law. 20. In the instant case as noted above, there has been no exercise undertaken by the authorities to verify the material particulars of the returns submitted by the assessee. It is also not demonstrated by the assessee as to what is the material he has placed before the authorities and this Court is constrained to observe that both the parties have failed to place on record the material particulars that ought to have been considered and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is claiming to have given the discounts to his purchasers. It is also not forthcoming whether the monthly returns as mandated under Rule 38 of the Rules have been verified before arriving at the conclusion. 23. We conclude that the authorities are required to state the facts and the material particulars and thereafter apply the precedents to the said facts and circumstances before rendering a finding. 24. In view of the above discussion the following order. Having heard the learned counsel for the parties and after perusing the records before this Court, it is not in dispute that the impugned orders do not reveal as to what are the details that were placed by the assessee before the Authorities and what are the details that the authorities verified before concluding the assessment. The records do not reveal if the assessee has formulated any incentive scheme or that he has entered into any contract or agreement with the purchasers and that the credit notes issued by him are in pursuance of the incentive scheme or the contract or agreement. The proceedings also do not reveal as to whether the assessee has placed before the authorities the tax invoices, sale bill and monthl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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