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TMI Blog1977 (6) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... n in this tax revision case is whether the amount of Rs. 2,60,327.72 representing trade commission allowed by the assessee-company and deducted In the various invoices of sales issued to the purchasers is to be excluded from the taxable turnover of the assessee-company for the purpose of assessment to Central sales tax. The assessee, Messrs. Travancore Rayons Ltd., is a company carrying on the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the taxable turnover and since the commission allowed by the assessee-company to its buyers was not a "cash discount" and it could at best be regarded only as a "trade discount", no deduction was admissible in respect of such commission and that the turnover for assessment purposes had to be computed by treating the gross amount mentioned in the invoice as the sale consideration. This view was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to the buyers. The correctness of the said decision rendered by the Tribunal is under challenge In this revision petition filed by the department, wherein the following questions of law have been raised: "A. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the amount of Rs. 2,60,327.72 representing commissions de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble by the buyers. In the circumstances, such a deduction allowed to the buyers by a manufacturer or a wholesaler, by whatever name it may be described, is clearly in the nature of a trade discount and the Tribunal was perfectly right in characterising it as such. 3.. In Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Advani Oerlikon (Private) Limited[1976] 37 S.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Division Bench. Accordingly, we hold that the Tribunal was right in directing that the amount of Rs. 2,60,327.72 representing commissions deducted by the assessee in the various invoices of sales should be excluded from the taxable turnover of the assessee-company for the year 1961-62. 4.. In the result, we dismiss this tax revision case, but direct the parties to bear their respective cost ..... X X X X Extracts X X X X X X X X Extracts X X X X
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