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361
A
STATE OF KERALA
v.
JAY ENGINEERING WORKS LTD., ERNAKULAM
8
February 18, 1983
[P.N. BHAGWATI AND E.S. VENKATAR,\MIAH, JJ.)
Kera/a General Tax Rule>, 1963, Rule 9(b) (I) Scope of-Claim for deduction,
in respect of goods returned by the purcharers, should be made in the same assesJ-
C
ment year in which they were sold.
Allowing the appeal, the Court
HELD : Any claim for deduction in respect of goods returned by the
purchasers under Rule 9(b) (i) of the Kerala General Sales Tax Rules, 1963
should be made in the assessment proceedings relating to the year in which the
said goods were sold and not in the assessing proceedings relating to the
assessment year in which they were returned. [362 A·B]
Deputy Commissioner of Sales Tax (Law) Board of Revenue (Taxe1),
Ernakulam v. Messrs Motor lndustrie1 Co., ErlfDkulam, [1983] 2 S.C.R. 384
followed.
D
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2291 of 1980.
E
Appeal by Special Leave from the Judgment and Order dated
the 21st November, 1978 of the Kerala High Court in TRC No. 31
of 1978.
P.K. Pillai for the Appellant.
E.C. Agarwala for the Respondent.
The Judgment of the Court was delivered by •
VENKATARAMIAH, J. This appeal is filed against the judgment
dated November 21, !978 of the High Court of Kerala in The Jay
Engineering Works Ltd. v. State of Kerala(1).
In Deputy Commissiner of Sales Tax (Law), Board of Revenue
(Taxes), Ernakulam v. M/s. Motor lndu3tries Co., Ernakulam('), wo
(I) 43 s.c.c. 492.
(2) (1983) 2 S.C.R. 384.
G
H
A
B
..
c.
D
J62
SUPREME COURT RBPORTS
(1983] 2 s.c.~.
have held that any claim for deduction in respect of goods returned
by the purchasers under Rule 9 (b) (i) of the Kerala General Sales
Tax Rules, 1963 should be made in the assessment proceedings
relating to the year in which the said goods were sold and not in the
assessment proceedings relating to the assessment year in which they
were actually returned. Following the above decision we set aside the
judgment of the High Court in this case and direct that the
assessment order for the year 1972-73 shall be accordingly modified .
As a consequence of this order, the Department is directed to
modify the assessment order for the assessment year 1971 -72 by
allowing deduction under Rule 9 (b) (i) of the Kerala General Sales
Tax Rules, 1963 and to ·make refund of any excess tax paid during
that year.
The appeal is accordingly allowed. No costs.
S.R.
Appeal allowed.·
•
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Lex