Discount deduction from taxable turnover requires invoice disclosure; a later credit note cannot replace the statutory condition.

A discount may be deducted from taxable turnover only when it is disclosed in the tax invoice or bill of sale and supported by the dealer's accounts under Rule 3(2)(c). Section 30 and Rule 31 govern credit notes for excess tax and operate in a distinct field from turnover deductions, so a later credit note does not by itself satisfy the deduction condition. The court reconciled earlier decisions on that basis and held that, absent invoice disclosure of the discount, the dealer was not entitled to reduce taxable turnover by the claimed amount.

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Issues: Whether a dealer can claim deduction of discounts in computing taxable turnover when the discount is not shown in the tax invoice.

Analysis: Section 30 of the Act deals with credit notes for excess tax charged and their effect on returns, while Rule 31 prescribes the particulars of credit and debit notes. Rule 3(2)(c) governs deduction of discounts from total turnover and its proviso requires that the discount be shown in the tax invoice or bill of sale and that the dealer's accounts support the claim. The provisions operate in distinct fields and there is no conflict between the credit-note mechanism under Section 30 and the turnover deduction under Rule 3(2)(c). Earlier decisions were reconciled by holding that the benefit of discount for turnover purposes depends on compliance with the invoice disclosure requirement, and a credit note issued after sale does not by itself entitle the dealer to deduction unless the discount is reflected in the invoice as required by the rule.

Conclusion: The assessee is not entitled to deduction of discount from taxable turnover where the discount was not shown in the tax invoice.

Ratio Decidendi: A discount can be deducted from taxable turnover only if it is disclosed in the tax invoice or bill of sale in accordance with Rule 3(2)(c); a later credit note does not override that statutory condition.

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