9911796707
TMI Blog2004 (8) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... he common order passed by the Sales Tax Appellate Tribunal (hereafter referred to as "the Tribunal"), Hyderabad, whereunder the Tribunal negatived the claim of the dealers to exclude the value representing the credit notes issued by the manufacturers to the dealer/distributors. As a common issue is involved in both the appeals and the tax revision cases, for the sake of convenience, they are being disposed of by this common order. 2.. All the dealers, who are the appellants and petitioners in the special appeals and the tax revision cases, were carrying on the business in liquor as distributors of the brands manufactured by M/s. Shaw Wallace Company Limited and M/s. Vinadale Distilleries (P) Limited, Hyderabad. For the relevant assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdiction initiated revisional proceedings and revised the assessment orders so as to bring to the taxable turnover the amounts representing the credit notes. As certain amounts were excluded while revising the assessment by the Deputy Commissioner, the Commissioner of Commercial Taxes further revised the assessment orders of the Deputy Commissioner so as to include the amounts representing the credit notes, against which the special appeals are filed by the dealer. Insofar as the dealers aggrieved against the revised orders of the Deputy Commissioner, they preferred appeals to the Sales Tax Appellate Tribunal. The Appellate Tribunal since upheld the orders of the revised assessments, the said orders are assailed in the tax revision cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes as part of the taxable turnover of the dealers. The learned counsel also referred to rule 6(1)(a) of the Andhra Pradesh General Sales Tax Rules, 1957 and contended that the tax is leviable only on the net turnover of the dealer after allowing all the discounts, etc. The learned counsel also referred to proviso to sixth schedule, which was applicable for the relevant assessment years in question, as per which insofar as the dealers apart from the first and the last seller, the intermediate sellers are liable to tax only on the differential turnover after excluding the turnover, which has already suffered tax. Therefore, according to the learned counsel, if the claim of the dealers is considered in the light of the above provisions, as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as the alleged tax collected was inseparable part of the sale consideration. Therefore, it is not open to the dealers to contend that what was returned is only the sale value of the goods excluding the tax that was collected by their seller. The learned counsel also contended that a categorical finding was recorded by the Tribunal that no evidence was adduced showing that the turnover representing the credit notes was also declared by the manufacturer as part of their taxable turnover and accordingly paid the tax. In the absence of any such evidence, it is not open to the dealer to contend that a portion of the turnover representing the credit notes had already suffered tax. When the dealers had received a part of the amount paid under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sales. Similarly, as found by the Tribunal, there are other credit notes representing even the quarterly rebates. In fact, the learned counsel also filed at page No. 12 of the material papers, a sale invoice where the rebate as well as the discount are specifically provided in the sale invoice itself. A perusal of the said sale invoice shows that the price includes sales tax, surcharge, etc., and out of the total sale price, a part of the sale price was reduced towards rebate and a part of the sale price was reduced as discount and thereafter the net amount payable by the purchaser to the manufacturer is specified in the same bill. If such discount or rebate was reduced from out of the total sale price which is inclusive of the taxes as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the manufacturers, who are the first sellers, did not claim any exemption on any such turnover during the relevant assessment years. Therefore, the said turnover had already suffered tax in the hands of the first seller, and therefore, the said turnover is not includable in the differential taxable turnover of the dealers. If it is included in the differential taxable turnover, the same would amount to double taxation of the same turnover, both in the hands of the first seller, i.e., manufacturer as well as the second sellers, i.e., the dealers in question. But the Tribunal on verification of the records, recorded a categorical finding that no material is produced by the dealers to show that such discounts were assessed to tax in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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