STATE OF KERALAversusJAY ENGINEERING WORKS LTD., ERNAKULAM

                                                                                 361
.                               STATE OF KERALA
                                                                                         A

                                             v.
           JAY ENGINEERING WORKS LTD., ERNAKULAM
                                                                                         8
                                   February 18, 1983

                 [P.N. BHAGWATI AND E.S. VENKATAR,\MIAH, JJ.)

           Kera/a General Tax Rule>, 1963, Rule 9(b) (I) Scope of-Claim for deduction,
     in respect ofgoods returned by the purcharers, should be made in the same assesJ-   C
     ment year in which they were sold.

          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
                                                                                         D
     assessment year in which they were returned. [362 A·B]
          Deputy Commissioner of Sales Tax (Law) Board of Revenue (Taxe1),
     Ernakulam v. Messrs Motor lndustrie1 Co., ErlfDkulam, [1983] 2 S.C.R. 384
     followed.

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2291 of 1980.                E
           Appeal by Special Leave from the Judgment and Order dated
'    the 21st November, 1978 of the Kerala High Court in TRC No. 31
j
     of 1978.

            P.K. Pillai for the Appellant.
r'
            E.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, !978 of the High Court of Kerala in The Jay                      G
     Engineering Works Ltd. v. State of Kerala(1).
          In Deputy Commissiner of Sales Tax (Law), Board of Revenue
     (Taxes), Ernakulam v. M/s. Motor lndu3tries Co., Ernakulam('), wo
                                                                                         H
           (I) 43 s.c.c. 492.
           (2) (1983) 2 S.C.R. 384.
     J62                  SUPREME COURT RBPORTS             (1983] 2 s.c.~.

A     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
B

.    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
c.    that year.

            The appeal is accordingly allowed. No costs.


     S.R.                                                  Appeal allowed.·
D




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