GEEP INDUSTRIAL SYNDICATE LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE question formulated for our determination is as follows : On the facts and in the circumstances of the case whether the discount equivalent to freight charges allowed amounts to "other discount" liable to be excluded in the turnover as contemplated in explanation (iii) to section 2 (1) (v) of the Karnataka Sales Tax Act, 1957 ?

(2.) THE undisputed facts are these : For the assessment year 1977-78, the appellant-company was assessed on a taxable turnover of Rs. 27,62,032. 32 as against the declared taxable turnover of Rs. 27,35,223. 60 levying a tax of Rs. 2,75,988. 62 and additional tax of Rs. 27,598. 86. In doing so, the assessing authority rejected the claim for exemption of Rs. 26,808. 72 which the appellant had claimed as freight charges.

(3.) MR . Bhavani Shankar Rao, learned counsel for the revision petitioner, contended that his case clearly fell within the four corners of the ruling of the Supreme Court in the case of Hyderabad Asbestos Cement Products Ltd. v. State of Andhra Pradesh [1969] 24 STC 487 and not in any other manner covered by the observations or the ruling in Hindustan Sugar Mills case [1979] 43 STC 13 (SC); AIR 1978 SC 1496. It so happens that in Hindustan Sugar Mills Ltd. v. State of Rajasthan [1979] 43 STC 13; AIR 1978 SC 1496, the Supreme Court, very soon after examining the case illustrated by it in paragraph 11 of the judgment as reported in the All India Reporter (at page 30 of STC) considered its earlier ruling in Hyderabad Asbestos Cement Products Ltd [1969] 24 STC 487, and observed as follows :