Sale of fixed assets is not business turnover unless there is evidence of trading in that class of goods.

Sale of fixed assets or discarded machinery is not, by itself, a business sale for sales tax purposes. Arc furnaces were purchased as workshop equipment for use in the manufacturing plant, not for resale, and there was no evidence that the assessee intended to trade in such goods or earn profit from their disposal. The definition of "dealer" under the Central Sales Tax Act requires carrying on the business of selling goods, so a one-off disposal of capital equipment does not establish taxable turnover merely because a profit was realised on sale. On those facts, the sale proceeds of the furnaces were not exigible to sales tax.

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Issues: Whether the sale proceeds of two arc furnaces, purchased for use in the foundry and later sold as unsuitable, formed part of the assessee's taxable turnover as a sale in the course of business.

Analysis: The furnaces were bought as workshop equipment for installation in the manufacturing plant and not as goods held for resale. There was no material to show that, at the time of purchase, the assessee intended to carry on the business of selling such furnaces or to earn profit from their disposal. The definition of "dealer" in section 2(b) of the Central Sales Tax Act, 1956 requires a person to carry on the business of selling goods, and the sale of fixed assets or discarded goods does not by itself establish such business activity. The mere fact that a profit was realised on disposal was not enough to convert the transaction into a business sale.

Conclusion: The sale of the arc furnaces was not taxable as part of the assessee's turnover and the assessee was not liable to sales tax on the amount realised from that transaction.

Final Conclusion: The disposal of a fixed asset or discarded equipment, without evidence of an intention to trade in that commodity, does not amount to carrying on the business of selling goods for sales tax purposes.

Ratio Decidendi: A sale of capital assets or discarded machinery is not exigible to sales tax unless the assessee is shown to have carried on the business of selling that class of goods with the requisite profit motive.

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