Invoice disclosure required for discount deduction; rectification disallowing the claim was upheld under VAT rules.

Discount under the Karnataka Value Added Tax Rules is allowable only where it follows regular practice or a contract, the invoice or bill of sale discloses the discount amount, and the accounts reflect payment of the reduced price. As the invoices did not show the discounts and that factual position was undisputed, the deduction was rightly disallowed. The rectification orders were held to be consistent with the statutory requirement, and no interference in writ jurisdiction was warranted under Article 226.

---

---

Issues: Whether discount claimed by the dealer could be allowed as a deduction when the tax invoice or bill of sale did not disclose the amount of discount, and whether the rectification orders disallowing such deduction warranted interference in writ jurisdiction.

Analysis: Rule 3(2)(c) of the Karnataka Value Added Tax Rules, 2005 permits deduction of discount only if it is in accordance with the dealer's regular practice or a contract, the tax invoice or bill of sale shows the amount of discount, and the accounts show that the purchaser paid only the amount originally charged less discount. The factual position that the invoices did not show the discounts was not in dispute. Applying the rule and the binding Division Bench view that absence of disclosure of discount in the tax invoice disentitles the assessee to relief, the rectification orders were held to be in conformity with the statutory requirement.

Conclusion: The discount deduction was rightly disallowed, and no interference was called for under Article 226 of the Constitution of India.

---