9911796707
TMI Blog1977 (10) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... constitutes the sale price or turnover of the goods sold to the customer. The only other question that pertains to T.R.C. Nos. 11 and 12 is whether the sale of unserviceable and scrap materials is exigible to tax under the Central Sales Tax Act. The facts necessary for determining the questions involved are these The assessee-company manufactures paper at its factory at Sirpur and sells the same to the customers. The customers place orders through up-country distributors. Under the terms of the agreement between the distributors and the assessee-company, the assessee-company has to give a discount at a fixed rate varying from time to time. The amount credited under the head "discount" is called "balance discount". The method followed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and, therefore, it cannot be included in the taxable turnover of the assessee. "Turnover", as defined in section 2(j) of the Central Sales Tax Act, used in relation to any dealer liable to tax under the Act, means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period and determined in accordance with the provisions of the Act and the Rules made thereunder. Admittedly, the sum allowed as discount is not cash discount. Therefore, the only question is what is the amount payable to the assessee as consideration for the sale of goods. In the bill, the amount shown as "balance discount" is included in the sale price. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Venkatarama Reddy also contended that the assessee only acted under the instructions of the customer, in other words, as his agent and that the assessee's only function was to credit the "balance discount" to the account of the distributors. It makes no difference, as already pointed out by us, in view of the definitions of "sale price" and "turnover". In the result, T.R.C. Nos. 11 and 12, in so far as the turnovers relating to "balance discount" paid to the distributors are concerned, are dismissed and allowed in so far as the turnover relating to the sale of scrap material is concerned. T.R.C. No. 13 of 1977 is dismissed as it only relates to the turnover representing the "balance discount". No costs. Advocate's fee Rs. 200 in each. O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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