Trade discounts / Incentives in sale cannot be treated as “Sale”

Tata Motors Ltd Vs State of Jharkhand (Jharkhand High Court)

Conclusion: Liability to pay any VAT on the trade discounts/incentives pursuant to bringing in Section 9(5) in JVAT Act was beyond the legislative competence of the State Legislature, and the same was ultra vires Article 246(1) of the Constitution of India, and could not be sustained in the eyes of law and accordingly, it had to be treated as if never existing in the Statute Book.

Held: Assessee-

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