1977 (10) TMI 104

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....om the customer by the assessee and paid to the distributor by it towards the distributor's share of discount constitutes the sale price or turnover of the goods sold to the customer. The only other question that pertains to T.R.C. Nos. 11 and 12 is whether the sale of unserviceable and scrap materials is exigible to tax under the Central Sales Tax Act. The facts necessary for determining the questions involved are these The assessee-company manufactures paper at its factory at Sirpur and sells the same to the customers. The customers place orders through up-country distributors. Under the terms of the agreement between the distributors and the assessee-company, the assessee-company has to give a discount at a fixed rate varying from tim....

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....d by the assessee to the account of the customer does not form part of the consideration for the sale of the goods and, therefore, it cannot be included in the taxable turnover of the assessee. "Turnover", as defined in section 2(j) of the Central Sales Tax Act, used in relation to any dealer liable to tax under the Act, means the aggregate of the sale prices received and receivable by him in respect of sales of any goods in the course of inter-State trade or commerce made during any prescribed period and determined in accordance with the provisions of the Act and the Rules made thereunder. Admittedly, the sum allowed as discount is not cash discount. Therefore, the only question is what is the amount payable to the assessee as consideratio....