TaxTMI 
TaxTMI 
2010 (2) TMI 1116
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....s a dealer under the provisions of the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as, "the Act") and the Central Sales Tax Act, 1956. For the period from April 2006 to September 2006 respondent filed monthly returns under the provisions of section 35(1) of the Act read with rule 38 of the Karnataka Value Added Tax Rules, 2005 (hereinafter referred to as, "the Rules"). Claiming deduction in the total turnover declared in the monthly returns filed towards discount allowed to its purchasers which has resulted in reduction of taxable turnover relating to goods sold during the said months. The respondent had issued invoices for the sales effected during the said period and had charged sales tax for goods at the rate of four per....
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....firmed the order of the appellate authority. Being aggrieved by the said order, the matter was carried to the Tribunal in S.T.A.No. 410 of 2007 which was pleased to allow the appeal and the amount of trade discount on the strength of the credit notes issued subsequent to the issue of tax invoices was allowed and a direction was given to issue revised demand notice. The said order is under challenge in this revision petition. We have heard the learned Government Advocate and the learned counsel for the respondent-assessee. It is submitted on behalf of the petitioner that the Tribunal was not justified in granting benefit of reduced tax in allowing the amount as trade discount on the strength of credit notes subsequent to the issue of invoic....
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.... has not taken into consideration various details with regard to variation in the total turnover on account of the credit notes issued. The Tribunal merely proceeds on the basis that there is a conflict between rule 3(2)(c) and rule 31 of the Rules. In fact, it is necessary to note that rule 3(2)(c) of the Rules pertains to the discounts that can be allowed in terms of the regular practice whereas rule 31 is with regard to particulars of credit and debit notes which have to be furnished by the registered dealers as and when the credit notes are issued to the purchasers which would automatically result in variation in the amounts as stated in the invoices issued.There is in fact no conflict between the aforesaid Rules. In fact, when sale inv....