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TMI Blog1983 (7) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... alised by the assessee by the sale of the car was liable to tax under the Tamil Nadu General Sales Tax Act, 1959, but found that the actual sum received by the assessee, after allowing for depreciation and loss, was only Rs. 14,500 and that therefore the turnover by way of sale of the car should be taken to be only Rs. 14,500. Not satisfied with the decision of the appellate authority, the assessee went before the Tribunal. Before the Tribunal, it was contended by the assessee that the sum of Rs. 14,500 represented the sale proceeds of a capital asset and therefore it could not be taken to be a turnover as defined in the Tamil Nadu General Sales Tax Act. In support of this contention the assessee relied on the decision of the Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iceable oil drums, hose-pipes, jerry cans, etc., were in the course of the business of the company, and therefore the turnover in respect of those commodities, even though they were unserviceable, was liable to tax. In that case, the Supreme Court took into account the definition of the term "business" under the Tamil Nadu General Sales Tax Act, 1959, which was considered to be of the widest scope so as to take in all transactions of sales carried on in the course of business, though the articles sold may not be in the line of business undertaken by the assessee. The decision in the Burmah Shell case [1973] 31 STC 426 (SC) has been followed by this Court in a series of cases, the latest of them being the decisions in T.C. No. 1321 of 1977 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case [1973] 31 STC 426 (SC), held that the activity of selling provisions to the workmen of the assessee, which was a textile mill, was incidental to the business of the manufacture of textiles, and that as such the sales were transactions falling within the definition of "business" under the Act and therefore those sales attracted liability to tax under the Act. Having regard to the fact that the Supreme Court in State of Tamil Nadu v. Binny Ltd., Madras [1982] 49 STC 17 (SC) has reaffirmed its earlier view in the Burmah Shell case [1973] 31 STC 426 (SC), the Tribunal in this case was not right in overlooking the decision of the Supreme Court in the Burmah Shell case [1973] 31 STC 426 (SC) and in holding that the sale of the car by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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