- (1.) Heard Sri Bharat Ji Agrawal, learned senior counsel appearing for the revisionist-applicant assisted by Sri Piyush Agarwal, advocate and the learned standing counsel appearing for the respondent. The applicant is a private limited company and is registered under the U. P. Trade Tax Act, 1948 as well as the Central Sales Tax Act, 1956. For the assessment year 1999-2000, the assessing authority applied the provisions of section 29A of the Act with respect to a sum of Rs. 12,54,534, which was deposited by the applicant in respect of the amount allowed as rebate and discount to the customers. Aggrieved by the said assessment order dated March 21, 2002, an appeal under section 9 of the U. P. Trade Tax Act was filed, which was dismissed by the Joint Commissioner (Appeals), Trade Tax, Noida vide order dated February 15, 2003. Further aggrieved, the applicant filed second appeal under section 10 of the Act before the Trade Tax Tribunal, Ghaziabad and the same has also been dismissed by order dated December 1, 2003.
(2.) The specific contention of the applicant was that since the amount of rebate on account of price variation having been refunded to the customers, the tax on the said amount cannot be treated as tax on the turnover and consequently, the same cannot be forfeited under section 29A of the Act since the same was refunded by the applicant. It is also alleged that the credit note executed by the applicant in favour of the customers was in fact, refund of tax to the customers and this material was placed before the assessing authority, but it failed to record a specific finding as to whether in fact, the applicant had refunded the entire amount which it realised as tax from the purchaser.
(3.) On the other hand, learned standing counsel submits that the Tribunal did not accept the aforesaid contention of the applicant and held that the credit note executed by the dealer is merely a discount offered in favour of the purchaser and, therefore, it cannot be construed to mean that it was, in fact, a credit note executed by the dealer for refund of tax on the sale to the purchaser.;