SIVANANDHA STEELS LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessees in this case are manufacturers of steel castings. During the course of assessment for the year 1974-75 the assessees claimed a deduction of a turnover of Rs. 1, 51, 878.02 on the ground that the said turnover represented sales returns in relation to sales that took place in the previous years 1972-73 and 1973-74.

(2.) THE assessing authority disallowed the said claim on the ground that the claim in relation to those sales returns was beyond the period of six months from the date of sales and therefore the assessees would not be entitled to any relief. THE assessees took the matter in appeal to the Appellate Assistant Commissioner. THE Appellate Assistant Commissioner also held that the credit notes for the sales returns had been issued only after six months from the date of sales and therefore the claim of the assessees could not be sustained. On a further appeal to the Tribunal by the assessees, the Tribunal has, following the decision of a Full Bench of this Court in Traders and Traders and Traders v. State of Tamil Nadu held that refunds cannot be granted after six months from the date of sales or after the date of final assessment whichever is later, as provided in rule 5-B of the Tamil Nadu General Sales Tax Rules, 1959. THE view taken by the Tribunal has been challenged by the assessees in this tax case.

(3.) HAVING regard to the provision in rule 5-B, the assessees should have made a claim before the date of the final assessment in relation to 1972-73 and 1973-74 or within six months from the date of the sales whichever is later. The application in the present case having been filed beyond the period of six months and also beyond the date of the final assessment for 1972-73 and 1973-74, we have to agree with the Tribunal that the claim is not sustainable under rule 5-B.The tax case is therefore dismissed. There will be no order as to costs.