TaxTMI 
TaxTMI 
2013 (3) TMI 579
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....appeal of the petitioner-Department and upholding the order dated January 25, 2007 passed by the Deputy Commissioner (Appeals) (for short, "DC(A)"). The brief facts, emerging from the face of record, are that the respondent-assessee is a limited company and was manufacturing refrigerators, TV, washing machines, etc., and was allowing discount on the occasion of festivals or on other occasions and had also placed on record copies of the various schemes prevalent during the relevant period and contended that the sales tax is chargeable on the discounted price and not on the gross value of the items as ultimately the respondent-assessee received only the net value and was liable to pay tax only on the net value. In addition to the items man....
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.... are attracted and that ultimately the respondent-assessee received the discounted/net value and the sales tax was to be charged on the net value rather than on gross value. The learned DC(A) was satisfied with the contention raised by the respondent-assessee and accordingly vide order dated January 25, 2007 allowed the claim of the respondent-assessee. Dissatisfied with the order passed by the learned DC(A) the petitionerDepartment preferred an appeal before the learned Tax Board who also vide order dated May 13, 2008 did not find any error in the order passed by the learned DC(A) and held that the learned DC(A) was correct and justified in directing to levy sales tax only on the net amount received by the respondent-assessee and acc....
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....G. Electronics (India) Pvt. Ltd. vide order dated January 24, 2007 had dismissed the revision petition preferred by the petitioner-Department against the same assessee. The learned counsel for the respondent-assessee also drew attention of this court towards definition of word "turnover" as provided under section 2(39) of the Rajasthan Sales Tax Act, 1994. He further drew attention of this court towards rule 25(1)(b) of the Rajasthan Sales Tax Rules, 1995 and submitted that if plain and simple language of section 2(39) of the Act read with rule 25(1)(b) of the Rules is read as a whole, then only on net turnover, the sales tax was chargeable and the assessing officer was unjustified in coming to his own conclusion. The learned counsel ....
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....t the time of or before the delivery thereof; Explanation I.-In the case of a sale by hire purchase agreement, the prevailing market price of the goods on the date on which such goods are delivered to the buyer under such agreement, shall be deemed to be the sale price of such goods. Explanation II.-Where according to the terms of a contract, the cost of freight and other expenses in respect of the transportation of goods are incurred by the dealer for or on behalf of the buyer, such cost of freight and other expenses shall not be included in the sale price but the burden of such proof shall lie on the dealer." Rule 25(1)(b) of the Rajasthan Sales Tax Rules, 1995 reads as under: "Rule 25(1)(b). all such sums allowed as discount ....
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....rala [2012] 49 VST 1 (SC); [2012] 32 Tax Up Date 213 (SC) has held as under (page 13 in 49 VST): "Before parting with the case, we may state that so far as the special discount is concerned, all that the authorities have to look into whether as a matter of fact, the petitioner received only the sum originally charged less the discount. It is the look out of the traders to see that the trade increase and it is for that purpose the trade discount is given. Hence, a person may not be able to clearly prove as to why the special discount was given. But if there has been a consistent practice of giving special discount, that has to be accepted by the assessing authority. On the basis of the discussions made above and in light of the earlier....
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....ale prices received or leviable by a dealer, and therefore, taxable turnover cannot obviously include an amount not received by the dealer as a part of the sale price." After hearing counsel for the parties and going through the material on record including the judgments and the provisions of the Act and Rules, relied upon by learned counsel for the respondent-assessee, this court agrees with the finding of the Tax Board that the sales tax was leviable only on the value received as net consideration by the respondent after discount and not on the gross value. Section 2(39) of the Act and rule 25(1)(b) of the Rules, which have been reproduced hereinabove, also clearly demonstrate that the tax was leviable after discount having been allowe....