Case Law Details
Kun Motor Company Pvt. Ltd. Vs Assistant Commissioner (CT) (Madras High Court)
There is no dispute that the Petitioner is a dealer in motor cars and had received trade discount from the manufacturer from whom it had purchased the cars for retail sales at its show rooms. The trade discount which has been offered by the dealer is an incentive given by the manufacturer based on the performance of the Petitioner in the retail market. The trade discount offered by the manufacturer to the Petitioner does not in any manner enhance the taxable value of the motor cars sold by the Petitioner to the retail buyer at its show rooms.
I therefore find that there is no basis on which the aforesaid amount of Rs.3,48,08,441/- can be taxed as taxable turn over of the Petitioner. The two transactions are independent transactions. One transaction is between the manufacturer who is also a dealer who had passed on incentives to the Petitioner and the second transaction between the Petitioner and its buyers of its retail show room to whom the Petitioner has sold the cars. As these two are independent transactions there is no basis on which the trade discount passed to it by the manufacturer(dealer) to the Petitioner can be added in to the taxable turn over of the Petitioner for the purpose of assessment under the TNVAT Act, 2006.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The Petitioner has filed these writ petitions, seeking for issuance of a Writ of Certiorari, to call for the records on the file of the Respondent in TIN/33581324259/2009-2010 & in TIN/33581324259/2010-2011 dated 05.11.2015 respectively and quash the same.
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