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TMI Blog1961 (11) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ales turnover of this canteen for the year 1954-55 is within the ambit of the Madras General Sales Tax Act. The canteen consists of about 500 members with a share capital of Rs. 2,500. It is stated that the object and purpose of this canteen is mainly to serve the members of the canteen with lunch and tiffin, but it is conceded that there is no prohibition, in the byelaws governing the canteen, of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that there was no profit motive on the part of the canteen when it catered to outside persons. The Tribunal has drawn the inference that there must have been a profit motive because in the year of assessment, the canteen earned a gross profit of Rs. 4,035-10-0 and a net profit of Rs. 2,210-15-9. The actual earning of profit is no doubt a relevant criterion in deciding the issue whether there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r colleges, residential quarters for the staff and hostels for students. The surplus brick or building material which was left after the completion of the contract work was sold by the society at cost price to other societies. The question for consideration was whether this constituted a sale attracting the Bombay Sales Tax Act. At page 502 Chagla, C.J., observed as follows: "Here again, what we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y profit motive because what was sold was really the surplus stock and that was for the cost price. We are unable to see how that decision can help the petitioner to advance the contention in this case that there was no profit motive on the part of the canteen when it sold tiffin and lunch and catered to persons other than the members of the canteen. We are of opinion that on the facts found by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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