9911796707
TMI Blog1995 (10) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... pass. The applicant is a public limited company incorporated under the Companies Act. It carries on the business of manufacture of cloth and yarn and is registered as a dealer under the State Sales Tax Act and the Central Sales Tax Act. It was assessed to sales tax by the Assistant Commissioner of Sales Tax. The assessing authority while assessing the assessee for the years 1966, 1970, 1972 and 1973 found as a fact that it made sales of miscellaneous items which constituted sale of discarded machineries, colours, chemicals, iron hoops and other materials. The assessee contended that these sales were not made in the course of business of the assessee and as such, it was not liable to be treated as a dealer in respect of the sale of the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral Sales Tax Act. The definition was inserted in section 2(bb) of the Act as under: "'business' includes- (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern." Similarly the definition of the term "business" was inserted from September 7, 1976, under section 2(aa) in the Central Sales Tax Act as under: "2(aa) 'busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed, would be required to be disposed of by sale. The assessee held that such sales should be termed as "casual" and be not treated as sales in its course of business. In our view, such sales are not casual, but usual and should appropriately be covered by section 2(bb)(ii) of the M.P. General Sales Tax Act and section 2(aa)(ii) of the Central Sales Tax Act as being "transactions" in connection with or incidental or ancillary to trade, commerce, manufacture, adventure or concern as indicated by inclusive definition given vide section 2(bb)(i) or section 2(aa)(i) as extracted above. 9.. In [1984] 55 STC 194 (MP) (Commissioner of Sales Tax v. Ratlam Strawboard Mills Private Ltd.), it is held as under: "As already observed, in the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutes every provision of law is to be looked as a whole and it is only in case of doubt that benefit can belong to the public. In case on hand, on proper appreciation, no such doubt is visible. 12.. We, therefore, hold that the sale of unserviceable items of stores comprising discarded assets like scrap, dyes, chemicals, broken iron hoops, obsolete machinery, coal-ash, etc., is a sale made in the course of business and is liable to tax and cannot enjoy any immunity from levy and recovery of tax under the relevant Acts. 13.. In fact, question is squarely covered by the decisions cited above and on that linch-pin, question does not now seem to be one of law stricto sensu. 14.. Ex consequenti, we answer the question in the affirmative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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