Sale of business trucks outside registered dealer activity was excluded from taxable turnover under the Sales Tax Act.

The definition of "dealer" under the Sales Tax Act was confined to a person carrying on the business of selling or supplying goods, so sale proceeds from assets unconnected with the registered business were outside taxable turnover. On the facts, the assessee was registered only for motor accessories, spare parts, motor spirit and lubricants, while the two used trucks had been employed in its transport business, not in the business for which dealer registration was required. Their sale was therefore not taxable, and the assessment was set aside in favour of the assessee.

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Issues: Whether the sale proceeds of two used trucks used in the assessee's transport business formed part of taxable turnover under the Sales Tax Act when the assessee was registered as a dealer only in motor accessories, spare parts, motor spirit and lubricants.

Analysis: The definition of "dealer" under Section 2(c) of the Act was confined to a person carrying on the business of selling or supplying goods. The transport service business in which the trucks were used was not itself a business for which registration as a dealer was required under the Act, and the trucks sold were not connected with any business for which the assessee was registered as a dealer. Their sale was therefore governed by the earlier ruling relied upon by the assessee.

Conclusion: The sale price of the two used trucks was not liable to be included in the taxable turnover, and the assessment order was set aside in favour of the assessee.

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