Trade discount excluded from sale price and taxable turnover under the Central Sales Tax Act; Revenue's challenge failed.

Trade discount allowed to customers was held not to form part of the sale price under section 2(h) of the Central Sales Tax Act, 1956, and therefore could not be included in taxable turnover. The Supreme Court followed its earlier ruling in Advani Oerlikon (P.) Ltd., treating those reasons as governing the present matter. The High Court's view, which had answered the reference in favour of the assessee and against the Revenue, was left undisturbed, and the Revenue's appeal was rejected.

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Issues: Whether trade discount allowed by the assessee to customers formed part of the sale price within the meaning of section 2(h) of the Central Sales Tax Act, 1956 and was includible in taxable turnover.

Analysis: The questions referred under section 41 of the Kerala General Sales Tax Act, 1963 were answered by the High Court against the Revenue and in favour of the assessee. The Supreme Court noted that the same view had already been taken in the earlier decision in Advani Oerlikon (P.) Ltd., and the reasons recorded there governed the present appeals.

Conclusion: Trade discount was not includible in the sale price or taxable turnover. The appeal was rejected.

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