Dealer status in sales tax turns on business activity and profit motive, not mere agency in disposing condemned government vehicles.

Disposal of condemned military motor vehicles through the Director-General of Supplies and Disposals did not, on the stated facts, amount to carrying on business for sales tax purposes. Mere deduction of departmental charges and use of office machinery to secure the best price were insufficient to show a trading venture or profit motive. Because the vehicles belonged to the Military Department and the Director-General acted only as its instrument or agent, no business activity or dealer status could be attributed to the Department or its agent. The assessees were therefore treated as first sellers and correctly assessed to tax.

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Issues: Whether the Director-General of Supplies and Disposals, in disposing of condemned military motor vehicles after deducting departmental charges and crediting the balance to the Military Department, was a dealer carrying on business so as to make the assessees liable as first sellers under the sales tax law.

Analysis: The decisive test was whether the activity amounted to business with a profit motive. The mere fact that the Director-General of Supplies and Disposals charged departmental expenses and used office machinery to secure the best price did not, by itself, establish a trading venture. The sales were of unusable or condemned government vehicles belonging to the Military Department, and the Director-General acted only as the instrument or agent of that Department. On the materials available, no course of business dealings or profit-making enterprise could be attributed either to the Military Department or to its selling agent. The burden of showing that the assessee was only a subsequent dealer was not discharged.

Conclusion: The Director-General of Supplies and Disposals was not shown to be a dealer carrying on business in respect of the disputed sales, and the assessees were correctly assessed to tax as first sellers.

Ratio Decidendi: Disposal of condemned government goods through an agent, without a profit motive or business activity, does not constitute business or dealer status for sales tax purposes.

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