STATE OF KERALA vs JAY ENGINEERING WORKS LTD., ERNAKULAM

The Supreme Court held that claims for deduction of goods returned by purchasers under Rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963 must be made in the assessment proceedings for the year in which the goods were sold, not in the year they were returned. The Court set aside the Kerala High Court's judgment and directed modifications to the assessment orders for the years 1972-73 and 1971-72, allowing for the appropriate deductions and refunds. The appeal was allowed with no costs awarded.