SOUTHERN MOTORS vs STATE OF KARNATAKA .

The Supreme Court interpreted Rule 3(2)(c) of the Karnataka Value Added Tax Rules, 2005, in conjunction with Section 2(34) and Section 30 of the Karnataka Value Added Tax Act, 2003, to determine the eligibility of post-sale discounts for deduction from taxable turnover. The Court held that only discounts mentioned in tax invoices are eligible for such deductions, thereby affirming the rectification orders of the Assessing Authority that disallowed post-sale discounts. The appeals were dismissed, upholding the High Court's decision in State of Karnataka vs. M/s Kitchen Appliances India Ltd.