Deductible trade discount turns on regular practice and account entries, not detailed explanation for granting it.

A special discount is deductible from taxable turnover under rule 9(a) of the Kerala General Sales Tax Rules, 1963 if it is shown to be allowed in accordance with the dealer's regular practice or under a contract, and the accounts reflect that the purchaser paid only the net amount after discount. The authorities cannot refuse the deduction merely because the dealer has not given a detailed commercial explanation for granting the discount. On the facts stated, the Tribunal's order was set aside and the matter remitted for fresh consideration of whether the discount was a consistent trade practice supported by the accounts.

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Issues: Whether special discount claimed by the dealer was deductible from taxable turnover under rule 9(a) of the Kerala General Sales Tax Rules, 1963 when the authorities had disallowed it for want of satisfactory proof of the circumstances in which the discount was granted.

Analysis: Deduction under rule 9(a) is available where discount is allowed in accordance with the regular practice of the dealer or under the terms of a contract or agreement, and the accounts show that the purchaser paid only the amount originally charged less the discount. The authorities had rejected the claim mainly because the dealer did not satisfactorily explain the circumstances under which the special discount was granted. The legal test, however, is whether the discount was in fact consistently given as a trade practice and whether the accounts reflected the true position. If that factual basis exists, the deduction cannot be denied merely because the dealer is unable to give a detailed commercial explanation for the discount.

Conclusion: The matter required reconsideration on the question whether the special discount was a consistent trade practice reflected in the accounts, and the Tribunal's order was set aside and remitted for fresh decision.

Final Conclusion: The assessment dispute was sent back for a fresh examination of the discount claim in the light of the statutory test governing deductible trade discounts.

Ratio Decidendi: A discount is deductible if it is shown to be allowed in accordance with the dealer's regular practice and is supported by the accounts showing that the purchaser paid only the net amount after discount.

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