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Issues: Whether the sale of paper and paper boards imported against an export licence, though effected as a solitary transaction by a dealer in sea-foods, was a transaction in connection with or incidental or ancillary to his business so as to fall within the charging provisions of the Tamil Nadu General Sales Tax Act, 1959.
Analysis: The definition of "business" under section 2(d) is wide and extends beyond regular trade in the particular goods sold to transactions connected with, incidental to, or ancillary to the assessee's existing business. The import of paper and paper boards was directly linked to the export of sea-foods and arose out of the export promotion scheme under which the licence was obtained. The sale of the imported goods was therefore not an independent casual act outside the business sphere, but a transaction referable to and dependent upon the assessee's sea-food business. The objection based on a place of business under section 2(q) was not examined, as it had not been raised before the Tribunal and required factual inquiry.
Conclusion: The sale of the imported paper and paper boards was a business-connected transaction taxable under the Act, and the Tribunal was in holding otherwise.
Ratio Decidendi: A transaction need not form part of the assessee's regular line of trade; if it is connected with, or incidental or ancillary to, the existing business, it falls within the statutory definition of business and is taxable accordingly.
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