2016 (11) TMI 1319

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.... on both the sides, petitions are finally heard. 3. The present petition is directed against the order dated 09.12.2014 passed by the Tribunal in ST A Nos.170-180/2012 whereby the Tribunal for the reasons recorded in the order has dismissed the appeals. 4. Short point of the case appears to be that as per the petitions, returns were filed under the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as the 'Act'). Re-assessment proceedings were undertaken and ultimately vide order dated 27.02.2009, Assistant Commissioner of Commercial Taxes (Audit) passed an order whereby he disallowed the deduction given by the petitioner-assessee through credit note. The matter was carried in appeal before the first appellate authority which ca....

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....S reported in 2016(85) KAR.L.J. 181 (HC)(DB) wherein it has been held in addition to the reflection in the invoice, there can be other mode for giving discount under Rule 31 and therefore he submitted that petitioner would be entitled to the benefit thereof. 7. Whereas, Mr. Vedamurthy, learned AGA submitted that as such, decision of SOUTHERN MOTORS supra is not brought to the notice of the subsequent Division Bench of this Court in its decision in the case of S.B. AUDIO AND VIDEO supra. He submitted that if discounting is not given in the invoice, it will leave room for large number of manipulation s by the dealer to avoid the liability to pay tax or to get the undue refund and therefore he submitted the view taken by Tribunal as such call....

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....e trade or otherwise known as trade discounts. It has to be demonstrated by the assessee that the further discounts, apart from the discounts in the tax invoice or sale bill already given, is pursuant to the terms and conditions of an agreement or contract between the seller and the registered dealer. For e.g. a contract may be entered into for providing further discounts in the even if the dealer achieved a particular target or exceeds a particular target. Thus to concise the same this Court is of the opinion that a discount is allowable under the tax invoice or sale bill. A further discount is also permissible by way of credit note and debit note subject to the condition it is demonstrated that the discounts are trade discounts or pur....