Co-operative society and dealer status: incidental ice supply was not a separate business, so no sales tax liability arose.

A co-operative society, as a body corporate, falls within the statutory meaning of "person" for dealer status under sales tax law, but liability arises only if the relevant activity is carried on as a business with an intention to trade in that commodity. The court applied the usual business indicators of volume, frequency, continuity and system, noting that no single factor is decisive. On the facts, the society's main activity was transporting fish for its members, and ice was supplied only incidentally to that transport service. Because there was no separate intention to carry on business in ice, the society was not a dealer in respect of ice supply and was not liable to sales tax on that activity.

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Issues: Whether the co-operative society was a dealer in respect of the purchase and supply of ice to its members.

Analysis: Liability under the sales tax law depended on the society answering the definition of a dealer. The definition required a person carrying on the business of buying or selling goods in the State. A registered co-operative society, being a body corporate, was a person within the statutory definition, and therefore the business requirement applied to it. The tests governing business activity required intention to carry on business, ordinarily indicated by volume, frequency, continuity and system, but no single factor was decisive. On the facts, the society's business was transporting fish for its members, and ice was supplied only as an incident of that transport activity. The supply of ice was not carried on with the intention of carrying on a separate business in ice.

Conclusion: The society was not a dealer in respect of the supply of ice to its members and was therefore not liable to sales tax on that activity.

Ratio Decidendi: A co-operative society that is a body corporate falls within the term person in the dealer definition, but it is liable only if the impugned activity is carried on as a business with the requisite intention to trade in that commodity.

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