Expanded definition of business brings ancillary sales of empty containers within sales tax net, with profit motive irrelevant.

The amended definition of "business" under section 2(1a) of the Bengal Finance (Sales Tax) Act, 1941 adopts an inclusive scope and covers transactions connected with, or ancillary or incidental to, trade, commerce or manufacture. Where the assessing authority found that sales of empty containers and other miscellaneous goods were ancillary or incidental to the manufacturer's activity, those sales fell within the statutory concept of business and were taxable. Profit motive was immaterial under the amended provision, and earlier pre-amendment authorities based on the commercial sense of business did not apply.

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Issues: Whether the sale of empty containers and other miscellaneous goods by the manufacturer constituted business and was liable to sales tax under the amended definition of "business" in the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The amended definition of "business" in section 2(1a) of the Bengal Finance (Sales Tax) Act, 1941, introduced by the Taxation Laws (Amendment) Act, 1968, gives an inclusive meaning to business and extends it to transactions in connection with, or ancillary or incidental to, trade, commerce or manufacture. Once the assessing authority had found that the sales of empty containers and other miscellaneous goods were ancillary or incidental to the assessee's manufacturing activity, those sales fell within the statutory concept of business. The court also held that profit motive was immaterial under the amended provision and that earlier decisions based on the pre-amendment commercial sense of business did not govern the case.

Conclusion: The sales of empty containers and other miscellaneous goods were taxable as business transactions under the Act, and the challenge to the assessment failed.

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