Business requires a profit motive: statutory non-profit canteen sales do not make the employer a dealer under sales tax law.

Sales made in factory canteens maintained under the statutory duty in section 46 of the Factories Act were not sales in the course of business for sales tax purposes. The court treated "business" in its commercial sense, requiring a profit motive in the sales activity; because the canteens were run on a non-profit basis under rules fixing prices through a managing committee, the assessees did not answer the description of "dealer". The sales tax assessments on the disputed canteen turnover were therefore not sustainable.

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Issues: Whether sales made in canteens maintained by the assessees under the statutory obligation of Section 46 of the Factories Act were sales in the course of business so as to render the assessees liable as dealers under the Madras General Sales Tax Act.

Analysis: The canteens were maintained pursuant to a statutory duty and were run under rules requiring prices to be fixed by a managing committee and sales to be made on a non-profit basis. The governing concept of "business" under the Act was taken in its commercial sense, which includes a motive to make profit from sales or purchases. Where that element is absent, the person selling does not answer the description of a dealer for sales tax purposes.

Conclusion: The assessees were not dealers in respect of the disputed turnover and the sales tax assessments could not be sustained.

Final Conclusion: The tax liability on the canteen sales was set aside because the transactions were not carried on as business in the statutory sense.

Ratio Decidendi: For sales tax purposes, "business" denotes a commercial activity involving a profit motive, and statutory non-profit sales made in compliance with a legal obligation do not render the seller a dealer.

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