State of Kerala Vs. Jay Engineering
Works Ltd. [1983] INSC 15 (18 February 1983)
VENKATARAMIAH, E.S. (J) VENKATARAMIAH, E.S.
(J) BHAGWATI, P.N.
CITATION: 1983 AIR 369 1983 SCC (2) 81 1983
SCALE (1)151
ACT:
Kerala General Tax Rules, 1963, Rule 9(b) (f)
Scope of- Claim for deduction, in respect of goods returned by the purchasers,
should be made in the same assessment year in which they were sold.
HEADNOTE:
Allowing the appeal, the Court
HELD: Any claim for deduction in respect of
goods returned by the purchasers under Rule 9(b) (i) of the Kerala General
Sales Tax Rules, 1963 should be made in the assessment proceedings relating to
the year in which the said goods were sold and not in the assessing proceedings
relating to the assessment year in which they were returned.
[362 A-B] Deputy Commissioner of Sales Tax
(Law) Board of Revenue (Taxes), Ernakulam v. Messers Motor Industries Co.,
Ernakulam, [1983] 2 S.C.R. 384 followed.
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 2291 of 1980.
Appeal by Special Leave from the Judgment and
order dated the 21st November, 1978 of the Kerala High Court in TRC No. 31 of
1978.
P.K. Pillai for the Appellant.
C. Agarwala for the Respondent.
The Judgment of the Court was delivered by
VENKATARAMIAH, J. This appeal is filed against the judgment dated November 21,
1978 of the High Court of Kerala in The Jay Engineering Works Ltd. v. State of
Kerala(1).
In Deputy Commissioner of Sales Tax (Law),
Board of Revenue (Taxes), Ernakulam v. M/s. Motor Industries Co., Ernakulam(2),
we 362 have held that any claim for deduction in respect of goods returned by
the purchasers under Rule 9 (b) (i) of the Kerala General Sales Tax Rules, 1963
should be made in the assessment proceedings relating to the year in which the
said goods were sold and not in the assessment proceedings relating to the
assessment year in which they were actually returned. following the above
decision we set aside the judgment of the High Court in this case and direct
that the assessment order for the year 1972-73 shall be accordingly modified.
As a consequence of this order, the Department is directed to modify the
assessment order for the assessment year 1971-72 by allowing deduction under
Rule 9 (b) (i) of the Kerala General Sales Tax Rules, 1963 and to make refund
of any excess tax paid during that year.
The appeal is accordingly allowed. No costs.
S.R. Appeal allowed.
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