TVL. DHANASELVI ENTERPRISES Vs. THE COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The Appellant/petitioner is a whole -sale dealer in cements and a registered dealer under the Tamil Nadu Value Added Tax Act as well as under the Central Sales Tax Act. The petitioner is an assessee on the file of the respondent.

(2.) In the Cement Industry, various types of incentives/discount are offered by the Companies to their dealers, with a purpose behind it, i.e. with a view to promote the business, aiming for higher profit, at the same time, not affecting the value of the cements.

(3.) The respondent issued pre -assessment notice, dated 30.04.2015, proposing to tax the discounts offered by the Cement Companies. The Assessee filed objections to the proposal on 22.05.2015. The Respondent relying on Sec. 19(20) of the TNVAT Act had proposed to levy tax on the said discounts. The respondent has passed an order dated 29.05.2015 subjecting the discounts to tax.