9911796707
TMI Blog1996 (7) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... to be taxable by the Tribunal. 2.. In so far as the first two items are concerned, it is contended by Sri Srinivasa Reddy, the learned counsel for the petitioner, that supply of water and of ridges and covers, is in the nature of service and not in the nature of sales, therefore, it does not attract the liability to sales tax. "Sale" is defined in section 2(n) of the Andhra Pradesh General Sales Tax Act, 1957 (for short "the Act"). The definition of "sale" in so far as it is relevant for our purpose may be extracted hereunder: "(n) 'sale' with all its grammatical variations and cognate expressions means every transfer of the property in goods whether as such goods or in any other form in pursuance of a contract or otherwise by one perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llottees of the industrial estate; therefore, there is a sale of water by the petitioner-assessee. So also supply of ridges and covers and bends for consideration after purchasing the same, would amount to "sale". Therefore, the turnover of these two items would attract the sales tax. In this connection, we may refer to a decision of the Division Bench of this Court in Chittoor Co-operative Sugars Limited v. State of Andhra Pradesh [1983] 53 STC 249. In that case, the co-operative society was supplying diesel to the lorries of its contractors from its petrol bunk at cost price without charging any profit. On the question whether such supplies would attract levy of sales tax, it was held by a Division Bench of this Court that inasmuch as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PSTJ 206, it was held in Andhra Prabha Private Ltd. case [1989] 73 STC 260; [1988] 7 APSTJ 78 that since the main activity of the assessee was business, incidental or ancillary transactions would also constitute business and the turnover would be exigible to tax. We are unable to agree with the contention of the learned Government Pleader as in the instant case, we have already pointed out, that the memorandum of association of the assessee provides for purchases and sales of goods as one of the objects of the petitioner-assessee and the supply of tender schedules, in our view, cannot be said to be incidental or ancillary activity of the business of the petitioner, because the petitioner was not carrying on the business in the sale or purch ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
