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TMI Blog1967 (3) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and for other incidental reliefs. 2.. The taxable turnover of the petitioner was fixed in exhibit P-5 at Rs. 5,41,541.80. This includes a sum of Rs. 57,684.04, which represents the value of the closing stock of the petitioner's business on 9th February, 1964, plus 10 per cent. thereon. The petitioner was carrying on a trade at Tirur and Calicut; and it is common case that he carried on this business only till 9th February, 1964. On 10th February, 1965, he formed a partnership with another person; and the whole stock-in-trade of his business was transferred to this partnership business. It is also not in dispute that the stock-in-trade thus transferred to the partnership formed part of his capital in the firm. The stock-in-trade thus tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te. Exhibit P-5 shows that the respondent has given deduction in respect of some items for which the petitioner claimed exemption. In other respects, the aforesaid two contentions of the petitioner were not accepted by the respondent. 3.. The learned counsel for the petitioner advanced before me the above two contentions for quashing the order of assessment, exhibit P-5. Regarding the second contention, he confined his submission only to 3 items, namely, gingerly, seeds and mustar seeds. It may straightaway be said that, even if the petitioner succeeds in his contentions, exhibit P-5 is not liable to be quashed as a whole, because they affect only the assessability of a minor part of the total turnover; and there is no dispute regarding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of trade or business are taken into account in determining the turnover under the State Act. The definition of the word "dealer" shows that every person, who buys or sells goods is not a dealer, but only a person, who carries on the business of buying, selling, supplying or distributing goods. And the transaction must be in the course of his trade or business. Applying the above principles, it is hardly possible to say that the transfer of a man's business or stock-in-trade to a firm, of which he is a partner, as contribution of his capital therein amounts to a sale of goods In the course of trade or business as a dealer; such a transaction does not involve any sale of goods. The transferor does not part with property in the goods. He only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t realised by a dealer by sale of his business did not constitute turnover assessable to tax. I respectfully agree with the above views. This decision, however, contains the following observations (page 281): "It may be accepted that when a business is sold along with stock-in-trade, that is, the goods remaining unsold, proceeds of the sale of the latter should be included in the turnover. In the present case, though the assessee has sold some stock-in-trade along with Its business, the amount of the proceeds of the sale of it is not shown separately from the amount of the proceeds of the sale of the goodwill, etc., and It is not possible to say that a particular portion of the proceeds of the sale of the business should be Included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s transaction Involved a sale. While holding that the transaction was no doubt a sale, the learned judge observed that it was not a sale in the ordinary course of business as a business man. The same appears to be the position, when a person either sells his business as a whole or transfers his business or the stock-in-trade thereof to a partnership for the purpose of forming a partnership and carrying on the trade in such capacity. 7.. The next question for consideration is whether gingerly seeds and mustard seeds are oil-seeds within section 14(vi) of the Central Act. The learned Government Pleader referred me to a decision in State of Andhra Pradesh v. Kajjam Ramachandraiah[1961] 12 S.T.C. 795., wherein a Division Bench of the Andhra Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of the Mysore High Court dealing with section 14(vi) of the Central Act, pointed out that the meaning of the word "seed" is that it is a flowering plant's unit of reproduction or germ capable of developing into another such plant. This is the test which the learned judges followed in deciding whether certain goods are seeds; and then they proceeded to consider whether the said seeds are "oil-seeds" under section 14(vi) of the Central Act. The aforesaid decision was followed by our Court in Sales Tax Officer, Kozhihode v. K.V. Moosa Koya and K.M. Ahamed Koya1965 K.L.T. 1223; 18 S.T.C. 464. , when dealing with the question whether coconut and copra are oil-seeds. Applying the above principles, I have no doubt that gingerly seeds and mu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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