9911796707
TMI Blog2020 (2) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner in the retail market. The trade discount offered by the manufacturer to the Petitioner does not in any manner enhance the taxable value of the motor cars sold by the Petitioner to the retail buyer at its show rooms. There is no basis on which the aforesaid amount of ₹ 3,48,08,441/- can be taxed as taxable turn over of the Petitioner. The two transactions are independent transactions. One transaction is between the manufacturer who is also a dealer who had passed on incentives to the Petitioner and the second transaction between the Petitioner and its buyers of its retail show room to whom the Petitioner has sold the cars. As these two are independent transactions there is no basis on which the trade discount passed to it b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring, the petitioner appeared and also produced relevant documents and prayed for dropping of the proceedings. However, the Respondent passed the impugned order. The Respondent has observed that the Petitioner had failed to produce the documentary evidence relating to the transactions. 5. Challenging the impugned order, the Petitioner submits that the discount offered by the manufacturer would actually reduce the price in the hands of the manufacturer who sold the cars to the Petitioner. It is submitted that such discount cannot be taxed in the hands of the Petitioner under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (in short the TNVAT Act, 2006) as Value Added Tax is payable on the turn over of sale as defined under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ITC which exceeds the output tax shall be reversed. According to Sec: 2(41) Explanation II (ii) any cash or other discount on the price allowed in respect of any sale and any amount refunded in respect of articles returned by customers shall not be included in the turnover. According to Rule 10(6) (b) (ii) (c) Wherever any credit notes are to be issued for discount or sales incentives by any dealer to another dealer after issuing tax invoice, the selling dealer shall pass a credit note without disturbing the tax component on the price in the original tax invoice, so as to retain the quantum of Input Tax Credit already claimed by the buying dealers as well as not to disturb the tax already paid by the selling dealer. Hence, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t legitimately be included in the turnover of the purchasing dealer. Whether one of the components of the purchase price goes to the coffers of the seller or not will not cease to be so if it is necessary for completing the same. Thus the total amount of consideration for the purchase of goods would include the price strictly so called and also other amounts which are payable by the purchaser or which represent the expenses required for completing the sale as, the seller would ordinarily include all of them in the price at which he would sell his goods. But if the sale price is fixed statutorily then the only obligation of the purchaser under the agreement would be to pay that price only and no other amount can be included in the purchase p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf of the purchasers, but is paid by the Government of India for different reasons and under its own scheme and after a budgetary allocation. As we have already observed, the scheme of payment postulates the right of the appellant to receive the subsidy on its clearance from the factory and not necessarily after the sale of fertiliser. Even before the sale of fertiliser, the right to receive the subsidy arises and under the circumstances, it cannot be said that subsidy would form part of the sale price or turnover of the appellant. 9. The learned counsel for the Petitioner further submits that the impugned order has been passed without following the principles of natural justice, inasmuch as the records were submitted during the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the manufacturer to the Petitioner does not in any manner enhance the taxable value of the motor cars sold by the Petitioner to the retail buyer at its show rooms. 13. I therefore find that there is no basis on which the aforesaid amount of ₹ 3,48,08,441/- can be taxed as taxable turn over of the Petitioner. The two transactions are independent transactions. One transaction is between the manufacturer who is also a dealer who had passed on incentives to the Petitioner and the second transaction between the Petitioner and its buyers of its retail show room to whom the Petitioner has sold the cars. As these two are independent transactions there is no basis on which the trade discount passed to it by the manufacturer(dealer) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
