Rejection vs return of goods: rejection is not a sale so rejected items need not be included in taxable turnover.
A return is a bilateral transaction allowing deduction from taxable turnover when supported by required proof and claimed within statutory conditions; rejection is a unilateral act under contract or the Sale of Goods framework where no property passed and thus the statutory time limit for returns does not apply, permitting excluded turnover treatment for rejected goods when facts and evidence establish rejection. (AI Summary)

Warranty replacement characterization of sale affects VAT applicability depending on reimbursement and agency structure.
Whether free replacement of parts under a manufacturer's warranty constitutes a taxable sale depends on factual and legal characterisation: if replacement is part of the original consolidated sale (with property deemed transferred and no separate consideration), it is not taxable; if the dealer receives reimbursement or credit from the manufacturer that constitutes separate consideration, the transaction may possess the elements of a sale and be taxable. Key determinants include agency relationship, method of manufacturer support, and whether consideration is separately received. (AI Summary)