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PETITIONER: STATE OF KERALA

       Vs.

RESPONDENT: JAY ENGINEERING WORKS LTD., ERNAKULAM

DATE OF JUDGMENT18/02/1983

BENCH: VENKATARAMIAH, E.S. (J) BENCH: VENKATARAMIAH, E.S. (J) BHAGWATI, P.N.

CITATION:  1983 AIR  369            1983 SCC  (2)  81  1983 SCALE  (1)151

ACT:      Kerala General Tax Rules, 1963, Rule 9(b) (f) Scope of- Claim for  deduction, in  respect of  goods returned  by the purchasers, should  be made  in the  same assessment year in which they were sold.

HEADNOTE:      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 (Taxes),  Ernakulam   v.  Messers   Motor  Industries   Co., Ernakulam, [1983] 2 S.C.R. 384 followed.

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil Appeal No. 2291 of 1980.      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.      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, 1978 of the High Court of Kerala in The Jay Engineering Works Ltd. v. State of Kerala(1).      In Deputy  Commissioner of  Sales Tax  (Law), Board  of Revenue (Taxes),  Ernakulam v.  M/s. Motor  Industries  Co., Ernakulam(2), we 362 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

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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. 363