Club supplies to members are not a sale unless the statute clearly creates that legal fiction.

A club's transfer or distribution of goods to its members was held not to be a sale under the Explanation to section 2(d) of the Travancore-Cochin General Sales Tax Act, 1125, because the provision treated a club as a dealer only where it sold goods and did not expressly extend the deeming fiction to every internal distribution. The Court contrasted this wording with the broader language used in the Madras enactment and declined to read in a wider sale fiction. The demand to treat the club's supplies as taxable sales was therefore rejected.

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Issues: Whether the transfer or distribution of goods by a club to its members constituted a sale within the meaning of the Explanation to section 2(d) of the Travancore-Cochin General Sales Tax Act, 1125.

Analysis: The Explanation to section 2(d) treated a club as a dealer where it sold goods to its members, but it did not expressly equate every transfer or distribution of goods by the club to its members with a sale. The Court compared the wording with the wider deeming language in the Madras enactment and held that the Travancore-Cochin provision did not go so far as to create a sale fiction for all such club transactions.

Conclusion: The transfer or distribution of goods by the club to its members did not amount to a sale under the Act, and the revision failed.

Final Conclusion: The demand to treat the club's supplies to its members as taxable sales was rejected, and the matter was decided against the revenue.

Ratio Decidendi: A club's distribution of goods to its members is not a sale unless the statutory deeming language clearly creates that legal fiction.

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