DEPUTY COMMISSIONER OF AGRICULTURAL INCOME TAX AND SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. ALUMINIUM INDUSTRIES LTD

JUDGEMENT

(1.) Special leave to appeal granted.

(2.) The assessee effected sales of goods to its dealers and allowed a trade discount on the catalogue price to cover the expenses incurred by the dealers and permit a margin of profit to them. The dealers were required to sell the goods at the catalogue price. For the assessment years 1960-61 to 1963-64, theHigh Court of Kerala has held that the amount allowed as trade discount could not be included in the taxable turnover. It has relied on Orient Paper Mills v. State of Orissa, (1975) 35 STC 84 (Orissa). For the reasons contained in our judgment delivered today in the Dy. Commr.

(3.) The appeals are dismissed with costs. Cost to be in one set only.