1959 (7) TMI 45

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..... inning and weaving plant. The assessees applied for registration under the Sales Tax Act for sale of the goods manufactured by them and in that application they stated that they were carrying on the business of selling yarn, cloth, cotton, waste stores etc., and accordingly the assessees were registered as dealers. The assessees sold in the relevant period some excess cotton and also cotton waste. .....

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..... itted by the assessees for registration and the registration certificate issued to them may not be decisive of the question whether the assessees are dealers in cotton or cotton waste. But it appears from the facts found by the Tribunal that the assessees from time to time sold cotton which was surplus and they also regularly sold cotton waste which was produced in their factory. Now, cotton waste .....

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..... to carry on business of selling the subsidiary product as a part or an incident of the business of the assessees may readily be inferred and the transaction of sale may be regarded as an activity in the course of the business of the assessees. If that be the true position, the assessees must be regarded as dealers in cotton as well as in cotton waste. By selling cotton regularly, the assessees ma .....

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