1979 (3) TMI 183

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..... intercourse amongst its members; to grant allowance to the widows or children of members who might have been left destitute and who, in the opinion of the committee, are deserving help; to grant scholarship to deserving Indians for competing for any of the Government services or for acquiring proficiency in any Science, Art or Industry; and to grant advances of money to members visiting foreign countries for professional studies. The association is running a hostel in the name of "Indian Officers' Association Hostel" at Mohana Vilas, Royapettah, Madras. The hostel has its separate rules and has separate accounts. In the years 1966-67 and 1971-72, the sales tax authorities took action in levying sales tax on the turnover of the mess in the .....

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..... what would be the legal position if the association itself was running the hostel. The second is to examine the matter in the light of the students themselves running the hostel for themselves by adopting the dividing system. Even assuming that the association itself was running the hostel, the point to be considered is whether there was any sale by the association as a dealer at the time when the food items were taken by the students. The objects of the association have been set out earlier. From the objects themselves it is clear that the idea is to promote a kind of camaraderie among the families of the members, who were Government servants of the State or of the Centre. There is also a provision for the grant of allowances to the wido .....

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..... rs on a non-profit basis to the members, being the Advocates practising in this Court. The co-operative society was assessed to sales tax on the ground that it was effecting sales of food and refreshments. The contention of the assessee was that it was not taxable, as it was neither a dealer nor doing any business and that its transactions did not amount to sales. This contention was negatived by the assessing authority and the Appellate Assistant Commissioner. The Tribunal found that the assessee was supplying tiffin and refreshments only to its bona fide members and that it was not effecting any sales and it was not a dealer under the Act. When the matter came before this Court, it was held that there was no sale of any refreshments by th .....

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