1954 (4) TMI 34 - HC - VAT and Sales Tax

Summary

The Madras High Court held that Sri Meenakshi Mills Ltd. and Messrs. Thiakesar Ali were not liable to pay sales tax on sales made in canteens for employees as they were not considered "dealers" under the Madras General Sales Tax Act. The court based its decision on the commercial sense of the word "business" and the absence of a profit motive in the sales. The tax revision cases were allowed with costs. Reported as Gannon Dunkerley & Co., (Madras) Ltd. v. The State of Madras [1954] (5 S.T.C. 216).