TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether supplies of tiffin and refreshments by a members' co-operative canteen to its bona fide members constituted sales exigible to tax under the Tamil Nadu General Sales Tax Act, 1959, and whether the society was a dealer liable to assessment.
Analysis: The Tribunal recorded a finding of fact that the canteen supplied tiffin and refreshments only to bona fide members, and that finding was accepted. Applying the governing Supreme Court decisions on members' clubs and similar associations, the Court held that where the supply is only to members and the association acts for its members, there is no transfer of property from one to another and therefore no sale within the meaning of the Act. In the absence of a sale, the question of liability to tax did not arise, and the contention that the society was a dealer was not sufficient to sustain the assessments.
Conclusion: The transactions were not sales exigible to tax, and the society was not liable to assessment on the canteen supplies.
Final Conclusion: The tax revision petitions failed and the assessments were set aside, leaving the assessee without sales tax liability on the impugned canteen transactions.
Ratio Decidendi: Supplies by a members' association to its bona fide members do not amount to sales under the sales tax law when there is no transfer of property from one person to another.
TaxTMI 
