1980 (7) TMI 224 - SC - VAT and Sales Tax

Whether the assessing authority has acted without power in including in its total turnover certain amounts recovered by the petitioner from its customers as tentative deposits on the sale of goods made to them? Held that - Writ petitions are allowed and the assessment orders are quashed in so far as they include the amounts recovered as deposits in the total turnover of the petitioner for the assessment years 1970-71 and 1971-72.

Summary

The Supreme Court allowed the writ petitions filed under article 32 of the Constitution against assessments made under the Kerala General Sales Tax Act, 1963. The Court held that the amounts recovered by the petitioner as "deposits" were to be regarded as sales tax and must be deducted from the total turnover for the purpose of assessment to sales tax. The assessment orders were quashed for the assessment years 1970-71 and 1971-72.