Taxable turnover includes recurring sales of empty gunny bags when commercially connected with the dealer's business.

Recurring sales of empty gunny bags arising from the assessee's business were held to form part of taxable turnover under the Kerala General Sales Tax Act, 1963, because the statutory definitions of dealer, casual trader, sale, and turnover covered business-connected transactions beyond the dealer's principal commodity. The court rejected the view that the bags were merely discarded materials outside business activity, noting their repeated commercial disposal and the amended breadth of the statutory scheme. As a result, the assessee was brought within the assessment net and the assessment was restored, with the Tribunal's exemption set aside.

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Issues: Whether the sale proceeds of empty gunny bags formed part of taxable turnover as sales made in the course of business, and whether the assessee could be brought within the definition of dealer or casual trader under the Kerala General Sales Tax Act, 1963.

Analysis: The assessee, though principally engaged in cashew trade, effected repeated sales of empty gunny bags arising in the course of its business. The statutory definitions of dealer, casual trader, sale, and turnover were material, because the Act extended beyond a trader's principal commodity and included occasional transactions of a business nature. The reasoning that the goods were merely discarded materials and outside business activity was not accepted, especially in light of the commercial identity and recurring disposal of the gunny bags. The court also treated the earlier approach based on the absence of a separate business in gunny bags as diluted by the amended statutory definitions.

Conclusion: The sale of empty gunny bags was taxable as turnover arising in the course of business, and the assessee fell within the statutory ambit for assessment. The revision was allowed in favour of the revenue.

Final Conclusion: The assessment made by the Appellate Assistant Commissioner was restored and the exemption granted by the Tribunal was set aside.

Ratio Decidendi: A dealer's taxable turnover may include recurring sales of goods acquired or disposed of in the course of the business, even if those goods are not the dealer's principal commodity, where the statutory definition extends to occasional business transactions and the sales are commercially connected with the business.

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