STATE OF ANDHRA PRADESH Vs. BAKELITE HYLAM LIMITED

JUDGEMENT

(1.) The only question in this tax revision case is whether the value of the goods returned by the purchasers to the dealer should be excluded from the turnover.

(2.) A few facts need be stated : Goods of the value of Rs. 9,140.70 were brought to tax after including their turnover in the turnover relating to the assessment year 1976-77. Subsequently, assessment for the assessment years 1977-78 and 1978-79 was taken up. In the assessment proceedings relating to the assessment year 1977-78 the assessee claimed that the value of the returned goods should be excluded from the turnover. The assessing authority and the first appellate authority declined to do so, but the Tribunal acceded to this request, relying upon rule 6(b) of the Andhra Pradesh General Sales Tax Rules. Rule 6(b) reads as follows :

(3.) A reading of this rule shows that a claim for deduction on account of returned goods should be preferred within a period of one year from the date of service of the order of assessment on the dealer. Of course, the claim for deduction should also satisfy the requirement of sub-clause (i) of sub-clause (ii) of clause (b), as the case may be. The proviso clearly shows that deduction can be made only out of the turnover relating to the assessment year in which the value of the returned goods was included. That is why the claim is tacked on to the service of the order of assessment relating to that year. Deduction cannot be given in any other assessment year. To be more precise, on the facts of this case it would mean that this deduction should be made only for the assessment year 1976-77; it cannot be allowed for the assessment year 1977-78, or for that matter any other assessment year.