BHARAT HEAVY ELECTRICALS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE order of the Karnataka Appellate Tribunal dated April 30, 1996 in respect of the assessment year 1991-92 has been challenged in this petition. Learned counsel for the petitioner submitted that the Tribunal has erred in taking into consideration the value of the debit note which was in respect of the transfer of goods from one State to another. It is submitted that, the real value has been given in the invoice which was issued from the other State and that should be the basis for the purpose of assessment.

(2.) ARGUMENTS of the learned counsel for both the parties heard.

(3.) THE debit note is only an internal arrangement of the petitioner for accounting adjustment in between Bangalore and Trichy units. The debit note was not acted upon and it was not considered to be a transfer as shown in the debit note. The transactions have been considered to be an inter-State sale from Bangalore and not from Trichy. The sale has to be of the amount what the buyer has to pay and the buyer has paid the money on the basis of sale invoice issued by the trichy unit. In these circumstances, the value shown in the invoice has to be taken into consideration and not that of the debit note. It will be for the petitioner to prove with reference to the goods sent of Rs. 3,41,04,462 under different debit notes as to how much is the amount actually received by way of sale price from the customers in respect of the invoice issued by trichy unit for the goods sent from Bangalore. If there is difference in value, it will be ascertained with the quantity of goods despatched from Bangalore and the value shown in excise gate pass. The matter shall be examined by the assessing authority.