Completed sale and sales return treatment upheld for goods returned after despatch against specific orders.

Goods invoiced, appropriated to specific orders and despatched were treated as a completed sale even though physical delivery was not taken by the purchaser. Goods later returned through bank or carrier arrangements after the sale had been completed were characterised as sales return, provided the statutory accounting conditions under Rule 5-A(b) were satisfied. The alternative claim that the transactions were merely unfructified sales deductible only in the earlier year was rejected because the return of goods did not alter the completed nature of the sale. The disputed turnover reduction was therefore allowable as sales return.

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Issues: Whether amounts relating to goods despatched against specific orders but later returned through bank/carrier arrangements were deductible as sales return under the sales tax law, or were merely unfructified sales deductible only in the earlier year.

Analysis: The goods had been invoiced, appropriated to specific orders, despatched in the relevant year, entered in the sales account, returned through bank/carrier when the documents were not honoured, and later credited back to the purchasers. On these facts, the transaction was a completed sale; physical delivery to the purchaser was not indispensable to completion. The subsequent return of goods after completion of sale fell within the concept of sales return, and the accounting conditions prescribed by Rule 5-A(b) were satisfied. The alternative characterisation as unfructified sales was rejected because the sale had already taken place and the later return did not alter its nature. The claim was also held to be within time and not barred on merits.

Conclusion: The deduction was allowable as sales return and not liable to be confined to an earlier year as an unfructified sale.

Final Conclusion: The turnover disallowance could not stand, and the appellant was entitled to reduction of the disputed amount.

Ratio Decidendi: Where goods are appropriated and despatched against specific orders, the sale is complete even if physical delivery is not taken by the purchaser, and goods later returned after completion qualify as sales return if the statutory accounting conditions are met.

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