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TMI Blog1958 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Bombay Sales Tax Act, 1953 (unamended), and the short question is whether the amount of the railway freight is a cash discount within the meaning of section 2(14) of the Act. Section 2(14) defines the expression "sale price" as meaning the amount payable to a dealer as valuable consideration for the sale of any goods, less any sum allowed as cash discount according to trade practice, but including any sum charged for anything done by the dealer in respect of goods at the time of or before delivery thereof, other than the cost of freight or delivery or the cost of installation when such cost is separately charged. Mr. Tamhane who appears for the applicants contends that the amount of railway freight falls within the expression "any sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actice. It is evident that the expression "according to trade practice" governs the expression "cash discount. " The discount must be cash and it must be in accordance with the trade practice. In other words, in order to bring cash discount within the definition the discount must have a sanction of trade practice. The discount must, therefore, be recognised according to the trade practice. The goods may be sold in one of two ways. Goods may be sold for price paid in cash or goods may be sold for a price on credit and it is quite conceivable that where the amount of the price paid is in cash a dealer may allow a discount against cash payment. The advantage of allowing a discount against cash is that the seller receives money in cash and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Spirit (Taxation on Sales) Act, 1949. The amount of tax then claimed was Rs. 4,333-59 nP. After charges had been framed against the petitioners, the prosecutor, the Sales Tax Officer and the petitioners came to an understanding regarding the payment of this tax, in consequence of which the prosecution was withdrawn and an order of acquittal was passed under the provisions of section 494(b) of the Code of Criminal Procedure. After a portion of the tax had been paid pursuant to the said understanding between the parties, a balance of about Rs. 987 was alleged to be still in arrears, and therefore, this second prosecution in C.C. No. 385 of 1958 was commenced. The petitioners plead that the present prosecution was not maintainable in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icants may properly be described as a concession allowed by a dealer to his customers. Now what concession a dealer should allow to his customers is entirely a matter between him and the other party, and whatever concession may be allowed by a dealer, it has nothing to do with the assessment which a Sales Tax Authority has to do under the Act. In order to claim a deduction it must fall within the language of the definition as contained in section 2(14), and if the amount of the railway freight does not fall within the definition of sale price as given in section 2(14), the applicants are not entitled to say that the amount of the railway freight paid by them should be allowed by way of deduction in the turnover in respect of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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