Broad definition of business under sales tax law brought railway coal-ash sales within dealer liability.

The Rajasthan Sales Tax Act, 1954 was applied to a railway department's sale of coal-ash because the statutory definition of "business" was construed broadly to cover trade, commerce, manufacture, and incidental or ancillary transactions, even without profit. The court treated the railway's coal-ash sales as falling within that definition and held that a general statute binds the State and its instrumentalities unless expressly or by necessary implication excluded. The absence of any exclusion for the Central Government or its departments was significant, and the later amendment expressly including them was treated as clarificatory. The railway was therefore a dealer and liable to sales tax on coal-ash sales.

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Issues: Whether the Divisional Superintendent, Northern Railway, Jodhpur, was a dealer within the meaning of section 2(f) of the Rajasthan Sales Tax Act, 1954, for the relevant assessment year and was consequently liable to sales tax on sale of coal-ash.

Analysis: The definition of "business" under section 2(cc) was construed broadly to include trade, commerce, manufacture, and transactions incidental or ancillary thereto, whether or not profit actually accrued. The railway's sale of coal-ash was held to fall within this definition. Applying the principle that a general statute applies to the State and its instrumentalities unless expressly or by necessary implication excluded, the absence of an express exclusion for the Central Government or its departments was treated as significant. The later amendment expressly including the Central Government and its departments was regarded as clarificatory rather than as introducing liability for the first time. No material was found to imply an exemption for the railway from the operation of the Act.

Conclusion: The railway was a dealer within the meaning of section 2(f) of the Rajasthan Sales Tax Act, 1954, and was liable to sales tax on the sale of coal-ash.

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