M/S IFB INDUSTRIES LTD. vs STATE OF KERALA

The Supreme Court addressed the interpretation of rule 9(a) of the Kerala General Sales Tax Rules, 1963, regarding the eligibility of trade discounts for deduction. The Court held that discounts not reflected in the invoice do not qualify as trade discounts and thus are not eligible for deduction under the said rule. The Court overturned the Kerala High Court's ruling that denied the appellant's claim for deductions based on credit notes issued post-sale, affirming that such discounts should be considered for deduction if they are part of the trade discount scheme.