DEPUTY COMMISSIONER OF SALES TAX (LAW) BOARD OF A REVENUE(T vs ADVANI OORLIKON (P) LTD. TRIVANDRUM

The Supreme Court held that under the Central Sales Tax Act, 1956, trade discount does not form part of the taxable turnover. The Court distinguished between cash discount and trade discount, clarifying that trade discount is a deduction from the catalogue price allowed to retailers, which does not attract sales tax. The Court upheld the decision of the Appellate Tribunal and the High Court, affirming that the taxable turnover should be calculated after deducting trade discounts from the catalogue price, as per Section 2(h) of the Act.