Sales tax leviable on credit note issued by manufacturer to dealer relating to replacement of defective parts

Tata Motors Ltd. Vs Deputy Commissioner of Commercial Taxes (Supreme Court of India) Supreme Court held that the credit note issued by a manufacturer to the dealer, relating to the replacement of defective parts, is a valuable consideration and hence, leviable to sales tax. Conclusion- Held that a credit note issued by a manufacturer to the dealer, relating to the replacement of the defective parts, is a valuable consideration within the meaning of the definition of sale and hence, exigible to sales tax under the respective State enactments of the States under consideration. In the result, app...