Quantity rebates through credit notes can be excluded from turnover when supported by regular practice, agreement, and accounts.

A genuine trade or quantity discount is excludible from turnover where it is allowed under the dealer's regular practice or under a contract or agreement, and the accounts show receipt of only the net amount. The text further notes that credit notes issued as rebate evidence a trading arrangement responsive to market conditions and customer demand. On those facts, revisional interference is not justified unless there is material rebutting the appellate finding that the rebate formed part of the sale terms, and the exclusion of the rebate from turnover is restored.

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Issues: Whether quantity rebate allowed through credit notes was deductible from turnover under the sales tax law, and whether the revisional authority was justified in disturbing the appellate order allowing the deduction.

Analysis: The statutory scheme treats turnover as the sale consideration subject to exclusion of cash or other discounts allowed on the price, and Rule 6(1)(a) permits deduction of discounts where they are allowed according to the regular practice of the dealer or in accordance with a contract or agreement and the accounts reflect that only the net amount was received. The record showed issuance of credit notes and material indicating a decision to grant rebate in response to market conditions and customer demand. The revisional authority did not place any adverse material on record to dislodge the appellate finding that the rebate formed part of the trading arrangement. On the facts, the authorities and precedents relied upon supported deduction of genuine trade or quantity discounts even when granted at the end of the year.

Conclusion: The quantity rebate was a deductible discount and the revisional interference was not justified; the assessee succeeded on the issue.

Final Conclusion: The appellate order allowing exclusion of the credit-note based rebate from turnover was restored and the assessee obtained relief.

Ratio Decidendi: A genuine trade or quantity discount supported by the dealer's regular practice or an agreement and reflected in the accounts is excludible from turnover, and revisional authority cannot disallow it without material rebutting the appellate finding.

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