Incidental business sales of waste and unsold newspapers are taxable when linked to the main trade after the amended definition of business.

Sales of unsold newspapers and other waste generated in the course of a newspaper business were treated as connected with the assessee's main business. After the amendment to the definition of "business", transactions that are incidental, ancillary, or otherwise linked to the principal trade are taxable even if they are not the assessee's core line of activity. The assessee's own registration as a dealer in unsold newspapers and waste products supported that connection. The objection that there was no separate business in waste articles failed, and the assessment on the disputed turnover was restored.

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Issues: Whether the sale of unsold newspapers and other waste by the assessee was incidental or ancillary to, or connected with, its main business so as to be taxable under the amended definition of business.

Analysis: The assessee had itself sought registration as a dealer in unsold newspapers and waste products. The sales in question arose out of materials acquired and used in the course of the assessee's principal business of printing, publishing and selling newspapers. After the amendment of the definition of business, transactions that are incidental or ancillary to, or connected with, the main business are liable to tax even if they are not the assessee's principal line of trade. The sale of unsold newspapers and other scrap or waste products was therefore not a detached transaction, but one linked with the assessee's business operations.

Conclusion: The transaction was held to be connected with the assessee's business and liable to tax; the objection based on lack of a separate business in such waste articles failed.

Final Conclusion: The revision was allowed and the assessment on the disputed turnover was restored.

Ratio Decidendi: After the amendment of the definition of business, sales of articles arising out of, or connected with, the main trade are taxable when they are incidental or ancillary to that business.

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