1967 (4) TMI 180

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ruled by the revenue. But the Tribunal considered that the assessee is not a dealer in respect of the turnover and will not be liable to tax in respect of it. Section 2 of the Madras General Sales Tax Act, 1959, contains definitions. There is an inclusive definition of "business". It says that the expression includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern. A dealer is defined in relation to the business he carries on by buying and selling among other things. "Turnover" for the purpose of the Act means the aggregate amount for which goods are bought or sold, or supplied or d .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Under that Act for any activity to be "business" it is not necessary that it should be with a motive to make gain or profit and there should be any profit accrued from trade or commerce. It is this aspect of the matter that was under consideration in Southern Railway Employees' Workshop Canteen v. Deputy Commercial Tax Officer, Tiruchirapalli[1965] 16 S.T.C. 187. It is there held that the definition as it occurs in Madras Act 15 of 1964 is within the competence of the State Legislature, as the expression "sale of goods" In the relevant entry enabling the State to levy taxes on sales has been used in the sense defined in the Sale of Goods Act. But the question whether a transaction which is not inherently of commercial character is within t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hat appears to be probable is that the assessee in order to provide amenity to its workmen has opened the fair price shop so that commodities may be made available to them at fair price. It may be that in fact profit accrues. But that is not what is material. The question is whether the assessee meant to run the fair price shop as a trade or commerce or a commercial activity. We do not find it possible to say that the fair price shop is a commercial activity of the assessee. We hold that the assessee is not carrying on the business of selling commodities in the fair price shop in a trade or commercial sense, and that, therefore, it is not with reference to the fair price shop a dealer within the meaning of the Act. On that view the tax ca .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X