Broad definition of business covers sale of unserviceable goods and empty containers when linked to manufacturing activity.

The statutory definition of "business" was construed broadly to include sales of incidental or ancillary goods, such as unserviceable goods, empty containers and drums arising from manufacturing activity. Because the articles were received and sold in connection with the assessee's operations, the sales had a direct nexus with the business and were taxable. The requirement of frequency and continuity was not treated as controlling in light of the enlarged definition, and earlier contrary authorities were distinguished on their facts.

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Issues: Whether the sale value of unserviceable goods, including empty containers and drums, was liable to sales tax as a transaction falling within the definition of "business" under the Act.

Analysis: The statutory definition of "business" in section 2(bb) of the Act is of wide amplitude and includes not only the principal trade, commerce or manufacture, but also transactions of sale or purchase of goods in connection with, or incidental or ancillary to, that business, including unserviceable goods, obsolete goods, scrap and waste materials. The articles sold were empty containers and drums received in the course of the assessee's manufacturing activity and were sold after use, so the sales had a direct nexus with the assessee's business. The decision that frequency and continuity of sales were essential was not accepted as controlling in the face of the enlarged statutory definition, and the earlier authorities cited by the assessee were distinguished on facts.

Conclusion: The sale of the unserviceable goods was a transaction of business and the amount was exigible to tax.

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