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
PK 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 vs State of Kerala1
In Deputy Commissioner of Sales Tax Law Board of Revenue Taxes Ernakulam vs Ms Motor Industries Co Ernakulam2 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 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
SR Appeal allowed


Summary:
Allowing the appeal the Court  HELD Any claim for deduction in respect of goods returned by the purchasers under Rule 9b 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 vs Messers Motor Industries Co Ernakulam  followed