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TMI Blog1969 (9) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and circumstances of the case, sales tax can be imposed under the Madhya Pradesh General Sales Tax Act, on the sales of coal ash and cinders in the year 1961 and of coal ash and empty drums in the year 1962 by M/s. Perfect Pottery Company Ltd., Ratlam. 2.. The question relates to the assessment for tax purposes in the assessment years 1961 and 1962 of the assessee, M/s. Perfect Pottery Co. Ltd., Ratlam, a manufacturer of stone-ware, pipes and sanitary fittings. During the assessment years in question, the Sales Tax Officer, Ratlam, subjected the assessee to tax on its sales of coal ash and cinders worth Rs. 17,583.72 P. in the year 1961 and of coal ash and empty drums amounting to Rs. 27,237.52 P. and Rs. 975 in 1962. The assessments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee effected the following sales of coal ash and cinders: Value of coal ash and cinders (i) Coal ash ... Rs. 7,192.47 P. (ii) Cinders ... Rs. 10,391.25 P. ------------- Total Rs. 17,583.72 P. ------------- Similarly, in the period from 1st January, 1962, to 31st December, 1962, the sales of coal ash and empty drums were of the following extent: Value of coal ash and empty drums (i) Coal ash ... Rs. 27,237.52 P. (ii) Empty drums ... Rs. 975.00 P. ------------- Total Rs. 28,212.52 P. ------------- These sales show that they were made regularly in each month and sometimes three to four times in a month and to different purchasers. In the years in question, the sale proceeds were accounted for in the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the business of the assessee. The sales of these commodities were made by the assessee regularly in the course of its usual business activity and the sale proceeds thereof went to inflate the commercial profits earned by the assessee. We are, therefore, satisfied that the Tribunal was wrong in excluding these sales from the taxable turnover of the assessee. 6.. Their Lordships of the Supreme Court in Ambica Mills case[1967] 19 S.T.C. 1. had occasion to deal with a somewhat similar question. The assessee in that case was a company carrying on the business of manufacturing and selling cotton textiles. It sold old machinery, stores, scrap and miscellaneous goods, as also by-products and subsidiary products as "kolsi" and "waste caustic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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