Definition of dealer under the Central Sales Tax Act excludes rubber cultivation and latex processing into sheets for sale

A person who grows rubber trees, collects latex, converts it into sheets, and sells those sheets outside the State was held not to be carrying on business of buying and selling goods within the meaning of the Central Sales Tax Act, 1956. The statutory definition of "dealer" in section 2(b) required such business activity, and the agricultural and processing activities described did not satisfy that test. The assessee was therefore not a dealer under the Act, and tax liability under the Central Sales Tax Act did not arise on those facts.

---

---

Issues: Whether a person engaged in growing rubber trees, collecting latex, converting it into sheets, and selling the sheets to customers outside the State is a dealer within the meaning of the Central Sales Tax Act, 1956.

Analysis: The liability to tax had to be determined under the Central Sales Tax Act, 1956. The statutory definition of "dealer" in section 2(b) requires carrying on the business of buying and selling goods. On the facts, the activity of growing rubber trees, collecting latex, converting it into sheets, and marketing the sheets did not amount to carrying on such business within the meaning of the Act.

Conclusion: The assessee was not a dealer under the Central Sales Tax Act, 1956, and the appeal failed.

---