https://www.taxtmi.com/caselaws?id=437937 A dealer replacing a defective automobile part during the warranty period and receiving a manufacturer's credit note was held to receive valuable consideration for a taxable sale. The Court reasoned that, although a warranty is collateral to the main sale, the dealer's replacement of the part from its own stock or market purchase, followed by credit from the manufacturer on return of the defective part, involves monetary recompense linked to the transfer of goods and is not a gratuitous service. It confirmed that Mohd. Ekram Khan properly covers such arrangements and rejected the view that the dealer-customer and dealer-manufacturer transactions are wholly independent. The credit note was therefore exigible to sales tax. en-us Mon, 15 May 2023 00:00:00 +0530 Mon, 24 Feb 2025 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437937 A dealer replacing a defective automobile part during the warranty period and receiving a manufacturer's credit note was held to receive valuable consideration for a taxable sale. The Court reasoned that, although a warranty is collateral to the main sale, the dealer's replacement of the part from its own stock or market purchase, followed by credit from the manufacturer on return of the defective part, involves monetary recompense linked to the transfer of goods and is not a gratuitous service. It confirmed that Mohd. Ekram Khan properly covers such arrangements and rejected the view that the dealer-customer and dealer-manufacturer transactions are wholly independent. The credit note was therefore exigible to sales tax. Case-Laws VAT / Sales Tax Mon, 15 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437937