Hundi collection auctions lacked commercial character, so the institution was not a dealer liable to sales tax.

Sale of silverware and other articles realised from hundi collections was not "business" under the Tamil Nadu General Sales Tax Act because the disposal was only a means of converting valuable articles into cash for the institution's charitable and religious objects. The court held that the auction lacked the commercial character required by section 2(d), and since dealer status under section 2(g) depends on carrying on such business, the institution could not be treated as a dealer. The proposed sales tax action was therefore without jurisdiction.

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Issues: Whether the public auction sale of silverware and other articles realised from the hundi collections of the Devasthanam constituted business so as to make the institution a dealer liable to sales tax under the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The definition of "business" in section 2(d) extends to trade, commerce, manufacture, or an adventure or concern in the nature of trade, commerce or manufacture, and section 2(g) makes dealer status dependent on carrying on such business. The sale in question was not an independent commercial venture, but a method of converting valuable articles found in the hundi into cash for the charitable and religious objects for which the institution existed. Such disposal of assets, whether by private negotiation or public auction, lacked the commercial character necessary to attract the statutory definition of business and therefore could not found dealer status.

Conclusion: The Devasthanam was not carrying on business and was not a dealer within the meaning of the Act; the proposed sales tax action was without jurisdiction.

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