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TMI Blog1999 (12) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... f the claim of Rs. 5,92,371.08 pertaining to sales return, the claim is not admissible on a turnover of Rs. 4,48,107.31 taxable at various rates on the ground that the claims were not preferred within 30 days as required under sections 4-C and 4-D of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act") in reply to the pre-assessment notice, the assessee contended that the claims relate to sales not materialised and therefore the assessee is eligible for exemption. While overruling the objection the assessing authority stated that section 4-D of the Act clearly specifies the time-limit for claiming exemption as unfructified sales and as the claims have not been preferred within a period of 30 days of the respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dealer shall be entitled to claim refund of the tax paid by the dealer in respect of such sale, subject to the following conditions, namely: (a) that the sale or purchase was included in the return and the tax paid; (b) that the goods were received back or returned within a period of six months of the date of sale or purchase, as the case may be; (c) that the price of the goods and the tax, if any, charged thereon were refunded in full to the buyer or seller, as the case may be; and (d) that the claim for refund of tax is filed within a period of thirty days of the receipt or despatch of the goods or before the completion of final assessment, whichever is later, to such authority, in such manner and subject to such conditions as m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of articles returned by customers shall not be included in the turnover; and..." 5.. In this connection, it is relevant to refer to the decision of the Madras High Court in Traders and Traders v. State of Tamil Nadu [1977] 40 STC 289 [FB] wherein similar claim under section 2(r) and explanation (2)(iii) read with rule 5-A(b)(i) of the Rules was claimed in respect of sales return when at the relevant time section 13(5) of the Act specified a period of six months from the date of sale so as to claim deduction in respect of sales return. The Madras High Court held in the decision reported in [1977] 40 STC 289 [FB] (Traders and Traders v. State of Tamil Nadu) that under section 13(5) of the Act, an adjustment of the tax paid on the sale p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s deduction of the value of the goods returned within three months from the date of their delivery from the total turnover of that financial year." 6.. In the case of State of Tamil Nadu v. English Electric Co. of India Ltd., the Madras High Court in [1992] 84 STC 1 has quoted the following observations of the Supreme Court from [1983] 53 STC 48 [Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes) v. Motor Industries Co.]: "While dealing with similar Rule, namely, rule 9(b)(i) of the Kerala General Sales Tax Rules, the Supreme Court observes as follows: 'Any deduction, that can be made under rule 9(b)(i) of the Rules can only be made from the total turnover of the assessment year in which the goods that are returned within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Assistant Commissioner held that in respect of claim sustained (sic) by him, the assessee did not prefer the claim within a period of 30 days on receipt of goods returned. In fact, before the Appellate Tribunal though the Appellate Tribunal observed that no documentary proof was shown either for the claim of sales return or unfructified sale, on the basis of the materials available in the records, it is quite clear that the disallowed claim relates to unfructified sale only. Therefore, the specific statutory provision under section 4-D of the Act will prevail over rule 5-A of the Tamil Nadu General Sales Tax Rules, 1959. Thus, we find that the claim has been rightly rejected for having not fulfilled the condition contemplated under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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