Liquidated damages for delayed delivery are not deductible from sale price and do not reduce taxable turnover.

Liquidated damages recovered for delay in supplying goods are not deductible from the sale price for sales tax purposes under the Central Sales Tax Act, 1956. The sale price comprises the consideration payable for the sale, with deductions limited to cash discount and similar permissible abatements; compensatory damages for delayed delivery are neither a rebate nor a discount and have no nexus with the agreed sale consideration. The Tribunal's view was upheld, and the reference petition was dismissed because no referable question of law arose.

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Issues: Whether liquidated damages levied for delay in supply of goods are deductible from the sale price while computing sales tax under the Central Sales Tax Act, 1956.

Analysis: The definition of sale price covers the amount payable as consideration for the sale of goods, with deduction only for cash discount and similar permissible abatements. On the facts, the agreed sale price was fixed separately, and the amount recovered as liquidated damages arose only from the dealer's default in delayed delivery. Such damages are compensatory in character, are not a rebate or discount, and have no nexus with the agreed consideration for the sale.

Conclusion: Liquidated damages for delay in supply are not deductible from the sale price and do not reduce the taxable turnover.

Final Conclusion: The Tribunal's view was upheld and the reference petition was dismissed because no referable question of law arose.

Ratio Decidendi: Amounts recovered as liquidated damages for breach of delivery time are not part of deductible rebates or discounts and do not the sale price under the sales tax law.

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