1992 (7) TMI 303 - HC - VAT and Sales Tax

Summary

Issues:
1. Dispute over taxable turnover and disallowed claims under various sales tax acts for the assessment year 1977-78.
2. Appeal against the Tribunal's decision disallowing special rebate deduction and exemption on cashewnut purchase.

Analysis:
1. The case involved a manufacturer of cement disputing a turnover discrepancy and disallowed claims under sales tax acts. The petitioner reported a taxable turnover of Rs. 10,41,22,891.23, which was adjusted to Rs. 11,49,03,500.74 after scrutiny. The Tribunal granted relief on freight charges but dismissed appeals on special rebate and cashewnut purchase exemption.

2. The petitioner filed revisions against the Tribunal's decision disallowing the special rebate deduction and cashewnut purchase exemption. The senior counsel for the petitioner focused on the special rebate issue, citing a previous judgment to support the claim that the rebate should be deducted from the turnover.

3. The key contention was whether the special rebate should be deducted from the turnover. The counsel argued that the rebate was allowed to maintain price parity between imported and indigenous cement, and thus, should not be included in the turnover as per the relevant sales tax act provisions.

4. The Court examined the relevant sections of the Tamil Nadu General Sales Tax Act, 1959, and the rules thereunder. The counsel argued that the rebate was given to compensate for price falls and should be deducted from the turnover based on established commercial practices.

5. After considering arguments from both sides, the Court focused on whether the special rebate should be an allowable deduction under the sales tax act. The Court referred to previous judgments to support the petitioner's claim that the rebate should be deducted from the turnover.

6. The Court concluded that the special rebate should not be included in the turnover and allowed the deduction under the relevant provisions of the Act and rules. The Tribunal's decision was set aside, and the tax cases were partly allowed, with no costs incurred by the petitioner.