Trade discount through credit notes cannot be rejected solely for omission from the sale invoice; matter remitted for fresh consideration.

Trade discount allowed through credit notes could not be disallowed merely because it was not reflected in the sale invoice, where the record otherwise established the discount. The HC treated the issue as covered by binding Supreme Court authority and held that rejection of the claim on that sole ground was legally unsustainable. The earlier rejection orders were set aside, and the matter was remitted for fresh consideration in accordance with the governing law.

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Issues: Whether the assessee was entitled to deduction of trade discount allowed through credit notes while computing taxable turnover, and whether such deduction could be disallowed merely because the discount was not shown in the sale invoice.

Analysis: The issue was treated as covered by the earlier decision applying the Supreme Court ruling that trade discount established from the record cannot be rejected solely because it was not reflected in the invoice. The Court held that the authorities erred in law in disallowing the claim on that sole ground and that the assessee's contention had to be accepted. The earlier appellate and rejection orders were therefore not sustainable. At the same time, the matter was sent back for fresh consideration in accordance with the binding law.

Conclusion: The assessee was entitled to have the claim for trade discount considered in law, and the rejection of that claim solely for non-mention in the invoice was incorrect. The matter was remitted for fresh decision.

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