Returned goods deduction must be claimed in the original sales year, not when the goods are later returned.

Deduction for the value of goods returned by purchasers under rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963 attaches to the assessment year of the original sale, not the later year in which the goods are returned. Where the goods had been sold in an earlier assessment year, the assessee could not claim the deduction merely because the return occurred subsequently. The assessment for the later year was therefore required to be modified in line with the year of sale, and the revenue succeeded.

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Issues: Whether the deduction for the value of goods returned by purchasers is admissible in the assessment year in which the goods are returned or in the assessment year in which the goods were originally sold under rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963.

Analysis: The deduction claimed for returned goods was considered in the context of the year of sale and the year of return. The governing rule was applied consistently with the principle that the deduction attaches to the assessment year relating to the original sale, not to the later year in which the goods are returned. As the goods had been sold in the previous assessment year, the deduction could not be taken in the year of return merely because the return occurred later.

Conclusion: The deduction was held to be claimable in the assessment year in which the goods were sold, not in the year in which they were returned, and the assessee was not entitled to claim it in the later year.

Final Conclusion: The assessment for the later year was required to be modified in accordance with the year of sale, and the revenue succeeded in the appeal.

Ratio Decidendi: A deduction for goods returned by purchasers must be claimed in the assessment year of the original sale, not in the assessment year of return.

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