Retrospective expansion of "business" cannot make canteen and surplus sales taxable when the amendment is invalid.

Canteen sales and sales of old surplus and discarded materials were not exigible to tax under the Bengal Finance (Sales Tax) Act, 1941, because the amended extended definition of "business" could not be applied retrospectively to bring those transactions within the charging provision. The Court treated the point as governed by its earlier ruling striking down the retrospective operation of that definition as ultra vires, so the impugned sales remained outside taxable business transactions under the Act as then stood. The reference was answered in favour of the assessee.

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Issues: Whether canteen sales and sales of old surplus and discarded materials were exigible to tax under the Bengal Finance (Sales Tax) Act, 1941, in view of the amended definition of "business".

Analysis: The reference was confined to the first question, since the other referred questions had not been mooted or considered by the Tribunal. The decisive issue was whether the extended definition of "business" introduced by amendment could be applied to bring the impugned transactions within the charging provision. The Court treated the matter as concluded by its earlier decision striking down the retrospective operation of the extended definition as ultra vires. On that basis, the canteen sales and the sales of surplus and discarded materials could not be treated as taxable business transactions under the Act as it then stood.

Conclusion: The transactions were not exigible to sales tax, and the question was answered in the affirmative in favour of the assessee.

Final Conclusion: The reference was answered in favour of the respondent, and the taxable character of the impugned sales was negatived.

Ratio Decidendi: Where the retrospective enlargement of the statutory definition of "business" has been struck down, transactions do not become taxable merely because they are sales of canteen goods or surplus and discarded materials.

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