https://www.taxtmi.com/caselaws?id=167661 Reimbursement by credit notes for spare parts supplied free during the warranty period was treated as part of the sale price because the substance of the transaction was supply of parts for consideration, and routing payment through credit notes did not change its tax character. The amount received from the manufacturer was therefore liable to sales tax under the Karnataka Sales Tax Act, 1957. However, penalty for non-payment of tax was not sustained because, before the authoritative ruling on the point, the tax position was debatable and the default did not reflect deliberate evasion. The tax and interest were upheld, but the penalty was quashed. en-us Wed, 24 Apr 2013 00:00:00 +0530 Fri, 02 Jan 2015 08:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=167661 Reimbursement by credit notes for spare parts supplied free during the warranty period was treated as part of the sale price because the substance of the transaction was supply of parts for consideration, and routing payment through credit notes did not change its tax character. The amount received from the manufacturer was therefore liable to sales tax under the Karnataka Sales Tax Act, 1957. However, penalty for non-payment of tax was not sustained because, before the authoritative ruling on the point, the tax position was debatable and the default did not reflect deliberate evasion. The tax and interest were upheld, but the penalty was quashed. Case-Laws VAT and Sales Tax Wed, 24 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=167661