Judgment

VENKATARAMIAH, J.:- In this appeal by special leave arising under the Kerala General Sales Tax Act, 1963 (hereinafter referred to as the Act) two questions arise for consideration. They are (i) whether on the facts and in the circumstances of the case the Appellate Tribunal was justified in law in holding that the assessee was entitled to exemption under R. 9 (a) of the Kerala General Sales Tax Rules, 1963 (hereinafter referred to as the Rules) from payment of sales tax on the turnover relating to service discount and (ii) whether the value of goods returned by the purchasers could be deducted under R. 9 (b) (i) of the Rules from the total turnover of the year of assessment in which the goods were actually returned when they had been sold in the previous assessment year.

2. The assessee M/s. Motor Industries Co., Ernakulam is a dealer in diesel, fuel injection parts etc. For the assessment year 1973-74 ending March 31, 1974 the assessment had been completed under the Act on the best judgment basis determining the taxable turnover at Rs. 47,42,687.71 by disallowing the claim for exemption of an amount of Rs. 69,707.68 which the assessee had claimed as service discount under R