1967 (7) TMI 110 - HC - VAT and Sales Tax

Summary

The High Court of Madras allowed the petitions of commission agents to deduct excise duty paid by the principal from their turnover, even though they did not directly pay the duty. The court held that commission agents, defined as dealers under the Madras General Sales Tax Act, were entitled to this deduction as the transactions were conducted on behalf of the principal. The court disagreed with the Tribunal's view and emphasized that denying this deduction would disrupt the tax provisions and result in double advantages for the assessee. The petitions were allowed with no costs.