1983 (2) TMI 252 - SCH - VAT and Sales Tax

Deduction of the value of goods returned by the purchasers during the assessment year 1972-73 under rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963, even though the said goods had been sold during the assessment year 1971-72 challenged Held that - Appeal allowed. As such deduction can be claimed not in the proceedings relating to the assessment year in which the goods were returned but in the proceedings relating to the assessment year in which they were sold allow this appeal, set aside the judgment of the High Court and direct that the order of assessment for the year 1972-73 shall be modified accordingly. Also direct the department to modify the assessment for the year 1971-72 and to refund to the assessee excess tax, if any, paid during that year.

Summary

The Supreme Court allowed the appeal, setting aside the High Court judgment in Jay Engineering Works Ltd. v. State of Kerala. The assessment orders for 1971-72 and 1972-73 were modified to allow deduction under rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963, and refund of excess tax paid in 1971-72 was directed. No costs were awarded. (Case Citation: 1983 (2) TMI 252 - SC)