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TaxTMI 
TaxTMI 
TaxTMI 
2011 (7) TMI 1051
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....ances, such as, colour television, DVD, audio music systems, air cooler and air conditioners, washing machines, mixers and grinders, micro ovens, water purifiers, kitchen appliances, toaster, iron box, spares, etc. On December 4, 2006, the Deputy Commissioner visited the assessee's premises for auditing the books of accounts. On verification of the books of accounts for the period April, 2006 to October, 2006, it was found that the assessee had issued credit notes to the customers on monthly sales performance basis incentives, subsequent to the issue of tax invoices. In the said credit notes, the assessee had deducted the output tax portion related to the discount and remitted the balance tax to the Department. The Revenue proposed to l....
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.... jurisdiction to decide the applicability and the validity of the rule 3(2)(c) notwithstanding the clear finding recorded by the honourable High Court. She further contends that the discount as pleaded by the assessee is not a discount. On the other hand, Sri Sarangan, the learned senior counsel appearing on behalf of the respondent's counsel, defends the impugned order. He contends that there is no error committed by the Tribunal that calls for any interference. He submits that even though the constitutional validity of rule 3(2)(c) was upheld by the learned single judge, when the same was challenged in the writ appeal, the matter was remanded for fresh consideration and hence, it cannot be said that the validity of rule 3(2)(c) has b....
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....ules, is either discriminatory or ultra vires of section 30. In fact, the rule mandates the applicability of the procedure to all assessees. There is no question of discrimination under this rule. As to how the rule may affect different assessees or different dealers is not the criteria for holding that the rule is a discriminatory provision and discriminates from dealer to dealer. 9. In so far as the ultra vires assessment is concerned I find that the rule only stipulates the disclosure of some information and does not either create a new liability or an additional liability or in any way come in the way of assessees claiming the benefit under section 30 of the Act. That is a procedure for claiming the benefit. Moreover, the benefit envis....
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....writ appeal was disposed of on certain terms. The Division Bench of this court noted the submissions of the appellant than the constitutional validity challenged in the writ petition, which has been urged in the writ appeal, would not be pressed in the writ appeal. Accordingly, the submission was noted and on merits of the appeal, the matter was remanded. The counsel appearing for the assessee submits that the Division Bench has not recorded a finding upholding the order passed by the learned single judge and consequently, he is entitled to contend that rule 3(2)(c) is ultra vires section 30 and ultra vires the Constitution of India. We are unable to accept the said contention. The constitutional validity and the validity of rule 3(2)(c) w....
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.... restricted in any manner and the appellate authorities are required to adjudicate on the issues relating to the claims of the appellant under section 30 in accordance with the law of the land. Therefore, this Tribunal has to adjudicate on the issue of the specific conflict made out and proved beyond doubt between rule 3(2)(c) and rule 31 on the one part and rule 3(2)(c) and section 30 of the KVATAct on the other part." It is highly unfortunate to note that notwithstanding the clear pronouncement in the two judgments referred to above, the Tribunal has proceeded to hold that it has to adjudicate on the conflict between rule 3(2)(c) and rule 31 on one part and rule 3(2)(c) and section 30 of the KVAT Act on the other part. The Tribunal has e....
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....ce issued in respect of sales must show and disclose the amount of discount that is being offered. It is an admitted fact that no such discount has been shown in the tax invoice. That the discount offered is subsequent to the raising of the tax invoice. On facts, we are of the view that in terms of the proviso to rule 3(2)(c), until and unless the discounts are shown in the tax invoice, the assessee is not entitled to any relief. In the instant case, the same is absent. Hence, It is evident that the view of the Tribunal requires to be set aside as being contrary to the proviso to rule 3(2)(c). The Tribunal held that the dealers have a right to revise the sale price of goods in accordance with contracts of sale. Even though the dealers may....