Rebate on reduced-price stock was a deductible discount within turnover, as later quantification did not alter its character.

The Rajasthan High Court held that rebate allowed to dealers on reduction of price against existing stock was deductible as a cash or other discount under the definition of turnover. Reading section 2(t) of the Rajasthan Sales Tax Act, 1954 with rule 29(a) of the Rajasthan Sales Tax Rules, 1955, the Court treated turnover as the aggregate of sale prices received or receivable and found the later quantification of the rebate did not change its character as a price deduction. The department's revision therefore failed.

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Issues: Whether rebate allowed to dealers on reduction of price against existing stock constituted a deductible discount under the definition of turnover.

Analysis: The definition of "turnover" in section 2(t) of the Rajasthan Sales Tax Act, 1954, read with rule 29(a) of the Rajasthan Sales Tax Rules, 1955, was held wide enough to cover the deduction. The amount allowed from the price in respect of the sale was treated as falling within the expression "cash or other discount". The fact that the rebate was quantified and given at a later date, on the basis of reduced prices and existing stock, did not alter its character as a price deduction, since turnover represents only the aggregate of sale prices received or receivable.

Conclusion: The rebate was a deductible discount and the revision by the department failed.

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