Kerala Court June 1977 Judgments

Deputy Commissioner of Agrl. Income-tax and S.T. (Law) Vs. Travancore ...

Court: Kerala

Reported in: (1977)6CTR(Ker)264

Balakrishna Eradi, J. - The short question arising for decision in this tax revision case is whether the amount of Rs. 2,60,327.72 representing trade commission allowed by the assessee-company and deducted in the various invoices of sales issued to the purchasers is to be excluded from the taxable turnover of the assessee-company for the purpose of assessment to Central sales-tax. The assessee Messrs. Travancore Rayons Ltd. is a company carrying on the business of manufacture and sale of rayon yarns, cellulose fibre etc. The relevant assessment year is 1961-62. In respect of the inter State sales effected by the company during the accounting period the company had allowed to the buyers a discount which was described in the invoices as commission and the price payable for the goods sold was shown in the invoices as the net amount after deducting the commission. In the return filed by the assessee the turnover had been calculated by taking into account only the net sale prices payable by...