1977 (6) TMI 86

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The judgment of the Court was delivered by BALAKRISHNA ERADI, J.-The short question arising for decision in this tax revision case is whether the amount of Rs. 2,60,327.72 representing trade commission allowed by the assessee-company and deducted In the various invoices of sales issued to the purchasers is to be excluded from the taxable turnover of the assessee-company for the purpose of assessm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in section 2(h) of the Central Sales Tax Act, 1956, only cash discount is an allowable deduction in fixing the taxable turnover and since the commission allowed by the assessee-company to its buyers was not a "cash discount" and it could at best be regarded only as a "trade discount", no deduction was admissible in respect of such commission and that the turnover for assessment purposes had to be ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... turnover of the appellant-company the amount of Rs. 2,60,327.72 representing the commission allowed by the assessee to the buyers. The correctness of the said decision rendered by the Tribunal is under challenge In this revision petition filed by the department, wherein the following questions of law have been raised: "A. Whether, on the facts and in the circumstances of the case, the Appellat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ein the amount of commission is deducted and the resultant balance is shown as the net price actually payable by the buyers. In the circumstances, such a deduction allowed to the buyers by a manufacturer or a wholesaler, by whatever name it may be described, is clearly in the nature of a trade discount and the Tribunal was perfectly right in characterising it as such. 3.. In Deputy Commissioner....